Abstract
The aim of this paper is to identify the effect of political instability on investment and economic growth. By using a dynamic balanced panel data model applied on annual data from 11 countries from the Middle East and North Africa (MENA) region over the period of 2000 to 2009. The political instability’ effect on the contribution of investment to economic growth has been the subject of a second empirical study within the framework of this research paper. The main outcomes drawn by these two empirical tests prove that there is no effect of political instability on investment and economic growth and a negative interaction between political instability and investment. Key words: Political instability, investment, economic growth, dynamic panel.
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