Effect Of Political Stability Research Articles

The Effect of Political Stability and Ownership on the Business Groups' Location Decisions

The Effect of Political Stability and Ownership on the Business Groups' Location Decisions

The effect of political stability and ownership on the business groups' location decisions

The effect of political stability and ownership on the business groups' location decisions

Effect of Political Stability, Geopolitical Risk and R&D Investments on Environmental Sustainability: Evidence from European Countries by Novel Quantile Models

Effect of Political Stability, Geopolitical Risk and R&D Investments on Environmental Sustainability: Evidence from European Countries by Novel Quantile Models

ARE POLITICAL STABILITY AND DEMOCRACY EFFECTIVE ON FINANCIAL DEVELOPMENT? EVIDENCE FROM SUB-SAHARAN AFRICAN COUNTRIES

The interaction between institutional phenomena such as political stability and democracy and the financial system is an important issue that has been researched for many years. For this reason in this study, the effects of political stability and democracy on the financial system in Sub-Saharan African countries during the period from 2002 to 2019 are investigated. In the study, in which the Two-Stage System Generalized Moments Method estimator is used, the dependent variable is the financial institutions development index. The explanatory variables of the study are the indicators of political stability and democracy. The growth in GDP per capita, trade openness, inflation rate, foreign direct investment and urban population ratio are the control variables. The analyzes display that democracy and political stability have positive effects on financial development. In terms of control variables, while the inflation rate has a negative effect on financial development, the economic growth and trade openness affect financial development positively.

On the Link Between FDI, Political Risk and Economic Growth in Sub-Saharan Africa: A Panel VAR Approach

This study looks at how foreign direct investment from other countries helps grow economies in Sub-Saharan Africa. But it not just about Foreign direct investment; the quality of institution in those countries also play a big role. We're exploring how foreign direct investment, political risks, and economic growth all connect. Using a Panel Vector Auto-Regressive (PVAR) approach with a sample of 28 sub-Saharan African countries over the period 1996–2016, the empirical results reveal that FDI positively relates to internal conflicts and political stability in Sub-Saharan African countries. However, the effects of economic growth and external conflicts are negative and significant. In addition, FDI and internal and external conflicts affect positively and significantly economic growth. However, the effect of political stability on economic growth is negative and significant. On the other hand, the interaction between foreign direct investment and political stability is negative and insignificant. Finally, the internal and external conflicts are negatively affected by foreign direct investment, yet they are positively influenced by political stability. These findings have important policy implications. If Sub-Saharan Africa is to realize its economic growth agenda, policymakers should promote FDI inflows to sub-Saharan African countries by improving their institutional quality by boosting political stability and reducing internal and external conflicts.

Effect of political stability on environmental quality: long-run and asymmetric evidence from Iceland by non-linear approaches

Effect of political stability on environmental quality: long-run and asymmetric evidence from Iceland by non-linear approaches

SİYASİ İSTİKRAR VE ŞİDDET/TERÖRİZM YOKLUĞUNUN TURİZM ÜZERİNE ETKİSİ: BİR PANEL EŞ BÜTÜNLEŞME ANALİZİ

In this study, the effects of political stability and the absence of violence/terrorism on tourism were empirically analysed, from the 2005 to 2018 period. A literature review on terrorism, violence, and political stability in tourism is included in the first part. The second part panel co-integration analysis has been carried out worldwide within 137 countries. As a result of the analysis, a positive long-run relationship was found between the change in the number of tourists and the political stability - no violence index. In addition, it was tried to produce evidence of whether there is an endogeneity between them.

POLITICAL STABILITY, INDEX PERCEPTION OF CORRUPTION AND DIRECT FOREIGN INVESTMENT IN SOUTHEAST ASIA

The incoming foreign direct investment will bring technology, new innovations, increase in capital, create jobs that will absorb unemployment, and improve the quality of human resources so that investment is considered important in accelerating economic growth in developing countries. The purpose of this study was to determine the effect of political stability and the Corruption Perception Index on Foreign Direct Investment in Southeast Asia. This study uses secondary data obtained from the World Bank, and Transparency International. The method used is a panel data model with a total cross-section of 10 (ten) countries in Southeast Asia and a time-series in 2010-2019. The research was conducted in 10 countries due to Timor-Leste because the country officially became a member of Southeast Asia in 2011. The research method used in this study is the Random Effect Model. The results showed that the independent variables of political stability, corruption perception index (GPA), and economic growth (EG) each had a significant and positive effect on foreign direct investment in Southeast Asia, while inflation and exchange rates had no effect on foreign direct investment. in Southeast Asia 2010-2019 period, ceteris paribus.

Key drivers of renewable energy deployment in the MENA Region: Empirical evidence using panel quantile regression

With the growing pressure from the adverse impact of environmental pollution and climate change, the deployment of renewable sources is becoming one of the economic priorities for governments worldwide. Despite potential gains of renewable sources, little evidence is provided in the literature about the determinants of renewable energy deployment in the MENA region. In particular, whether political stability, governance quality and financial development matter or not for unleashing the potentials of renewable energy programs. To this end, this paper aims to fill the gap by examining the impact of political stability, quality of governance and institutions, and financial development on the deployment of renewable energy production in 9 selected MENA countries using annual data over the period 1984-2014. Accordingly, an innovative panel quantile regression model with non-additive fixed effect has been developed to tackle this issue. Our findings confirm that the effect of political stability is clearly heterogeneous and supports earlier claims about the importance of political stability to foster investments in the renewable energy sector. Findings also show that financial development has a positive impact on renewable energy production. In addition, we also find that the interaction term between governance effectiveness and financial development is negative for the lower quantiles but positive for the highest quantiles. These findings support our hypotheses and suggest that political stability, governance effectiveness, and financial development are essential drivers for promoting renewable energy production in the MENA region.

The relationship between IPSAS adoption and perceived levels of corruption: Does political stability matter?

The paper aims to examine the relationship between International Public Sector Accounting Standards (IPSAS) adoption and the perceived level of corruption in developing countries. It also attempts to inspect the mediating effect of political stability on this relationship. We follow the methodology used by the International Federation of Accountants (IFAC) to assess country adoption status and we apply a panel regression analysis to 57 developing countries over the 2016–2019 period. Our findings suggest that country’s decision to adopt IPSAS cannot shortly lead to a reduction of its corruption perceived level. In addition, we make evidence that the level of corruption does not matter on the relationship between the IPSAS adoption and the corruption perceived level. We find also that political stability, while decreases corruption, doesn’t contribute to enhance the effect of IPSAS adoption on the perceived corruption level. This paper provides insights into the role of IPSAS adoption to countries’ corruption levels. It will be of interest to accounting standard-setters, regulators, and policymakers in countries that are transitioning to or considering International Public Sector Accounting Standards. It will also be of interest to regulators and policymakers, multilateral institutions in their effort to fight corruption

Can human development and political stability improve environmental quality? New evidence from the MENA region

We investigate the effects of human development and political stability on environmental quality and examine whether they are viable tools for improving environmental policies. The literature finds that countries can reduce harmful emissions beyond a certain per capita income threshold. However, this literature omits the impact of human development and political stability. We fill this gap using a sample of 16 Middle Eastern and North African countries over the period 1990–2016 to examine environmental quality–human development causality and the effects of political stability on this relationship. We reveal the existence of an inverted U-shaped relationship between human development and the ecological footprint that varies between oil and non-oil countries. Moreover, we show that political unrest delays environmental improvements. Our findings are critically important for policymakers, because they demonstrate the positive effects of human development and political stability on the environment through better education and healthcare systems.

Rule of law and CO2 emissions: A comparative analysis across 65 belt and road initiative(BRI) countries

This article mainly compares different effects of political stability, corruption control and rule of law on CO2 emissions across 65 belt and road initiative countries from 2000-2016. We utilize across low income (LI), lower middle(LM), upper middle(UM) and high income (HI)countries. The results show that institutional factors such as political stability, corruption control and rule of law are highly important in lowering carbon emissions and improving environmental quality. The interacting effect between political stability and rule of law can reduce CO2 emissions. Foreign direct investment (FDI) shows a heterogeneous effect on carbon emissions across different income groups, confirming “Pollution Haven” and “Pollution Halo” hypothesis. Trade openness reduces CO2 emissions in low income and high income countries, which increases CO2 emissions in lower-middle income countries. It is important to enhance the enforcement of environmental law to decrease CO2 emissions.

Political and Economic Uncertainty and Investment Behaviour in Pakistan

This study analyses the effect of political stability and macroeconomic uncertainty on aggregate investment behaviour in Pakistan over the period 1960–2015. The Auto-Regressive Distributed Lags (ARDL) methodology is applied to explore both the long-run equilibrium relationship and short-run behaviour of investment. The macroeconomic uncertainty variable is derived from real exchange rate and is computed by the best-fitted GARCH model. The results reveal robust effects of political stability and macroeconomic uncertainty on overall investment activity in Pakistan. The government nationalisation policy, GDP growth, user cost of capital, credit availability and degree of openness are found to be the other key determining factors for investment both in long- and short-run. However, the favourable impact of physical infrastructure on investment holds in long-run only, while its effect is adverse though insignificantly in short-run. The findings support the neoclassical flexible accelerator principle and are consistent with economic theory. The volume of available funds is the binding constraint for investment and the McKinnon-Shaw hypothesis is validated in the short-run. Keywords: Aggregate Investment, Irreversibility, Macroeconomic Uncertainty, Political Stability, GARCH, ARDL, Bound Testing Approach, Pakistan

A Study of the Intervening Effect of Political Stability on the Relationship between Performance Contracting and Measurement, and Public Service Delivery in Kenya

The performance of public agencies is influenced and affected by many factors, both internal and external. The internal factors are in many cases controllable, while external factors tend to fall outside the control of public sector managers. Moreover, the effect may serve to ameliorate performance or intervene to weaken performance and thereby adversely affect delivery of services. This paper explored the intervening effect of political stability, an external factor, on the relationship between performance contracting and measurement, and public service delivery (expressed as customer satisfaction) in Kenya. The study was based on the results of measurement and evaluation of the performance of 470 public agencies that operated under performance contracts between 2004 and 2011. Using regression analysis, it was found initially that on its own, political stability had no significant relationship with or influence on customer satisfaction. It however had an effect on the relationship between performance contracting, measurement and public service delivery, where a unit change in political stability contributed negatively to customer satisfaction by a factor of 0.257, though not statistically significant. Correlation analysis established further that social chaos and turmoil, which result in political instability, negatively impact the attractiveness of a country in the global arena.

US Foreign Direct Investments and Economic Growth in Sub-Saharan Africa: Evidence from Panel Data

This paper uses panel data for the period ranging from 1996 to 2013 to investigate the contribution of US foreign direct investment to economic growth in fourteen Sub-Saharan African Countries. We apply the fixed and random effects model as well as the Generalized Method of Moments model to estimate two different equations. In the first equation, capital stock is estimated to include US foreign direct investments for selected years while the second equation excludes US direct investment from the capital stock variable. The results of the estimations revealed that domestic capital significantly affect economic growth in these countries but found no discernible evidence that US FDI have any direct impact on economic growth in the host countries. The results also found significant effect of political stability and openness on the growth of Sub Saharan African countries. The implication of these findings is that the region can promote economic growth by mobilizing domestic resources, ensuring that there is political stability and opening their economies to external competition.

Political Institutions, Political Careers and Environmental Policy

SummaryHigh party discipline and high party strength induce legislators to stay committed to the party's promised policies after their election. This is because party leaders are able to punish deviations and reward behavior that is in the party's interest. Higher political stability induces party leaders to take a longer‐term perspective. We investigate the following interrelated hypotheses: (i) the effects of party discipline and party strength on environmental policy are conditional on the degree of political stability; and (ii) the effect of political stability is conditional on the levels of party discipline and party strength. Our empirical findings support these hypotheses.

The effect of political stability on public education quality

Purpose – The purpose of this paper is to provide a preliminary analysis to evaluate the implications of political stability for educational quality, evident in the survival rate measure.Design/methodology/approach – Secondary analyses were conducted for data drawn from the Political Risk Service Report, the World Bank Report, the United Nations Report and the OECD Report, using a sample comprising 47 countries, 26 politically stable and 21 politically unstable during a ten‐year period of time (1998‐2008).Findings – The study reveals that political stability plays a major role in explaining the survival rate in education when used as a single predictor or, when introduced in the analysis with the GDP per capita. Following previously reported findings suggesting causal relations between high economic growth and regime stability, the authors’ analyses show that as far as educational quality is concerned, political stability plays a far more significant role compared to countries’ economic circumstances evid...

Politics in Time: History, Institutions, and Social Analysis

Politics in Time: History, Institutions, and Social Analysis, Paul Pierson, New Haven, CT: Yale University Press, 2004, pp. xii, 196.Political scientists of the world unite against the decontextual revolution; you have nothing to lose but your n! Okay, there is no such call to arms in Paul Pierson's important new work, but his book is a well-crafted shot across the bow of the dominant strains in political science. As Pierson sees it, too much of political science scholarship rips politics from its historical and institutional context for the sake of generating carefully bounded causal arguments that are often misleading, if not dead wrong, about the sources and effects of political stability and change. Thus, the aim of Politics in Time is to critique and offer an alternative approach to the tendency of analyzing politics by “reducing a moving picture to a snapshot” (104).

Political instability, policy uncertainty, and economic growth: An empirical investigation

This paper elaborates upon the effect of political stability on economic growth using a novel approach. Unlike the literature on growth that emphasizes the turnover of decision makers, this paper focuses on the volatility of economic policies as the relevant indicator of stability. The literature on growth ignores the microeconomic instability associated with frequent changes of government policies. The empirical results of this paper indicate that the effect of political instability on economic growth is not conclusive. Most of the commonly used proxies for political instability have failed to explain growth differences across countries. The political instability indices have no significant effect on growth when a reasonable set of core variables is also included in the regression equation. The results also show that almost all of the policy uncertainty variables are significantly and negatively correlated with economic growth. However, the instability of economic policies has no significant impact on the accumulation of capital.