Abstract
Political stability normally plays an essential role in the process of economic development of any country. The vector error correction model (VECM) is employed to examine the impact of political stability on economic growth in Tanzania covering the period of 1996–2014. The cointegration test has been ascertained through the application of augmented Dickey–Fuller (ADF) and Phillips–Perron (PP) tests showing that there is a long-run relationship. The results show that only political stability is statistically significant and has a positive relationship with economic growth, while gross domestic investments (GDI) and total labour forces are not statistically significant but have a positive relationship with economic growth.
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