Effects Of Political Instability Research Articles

Effects of Political Instability on Private Investment: Empirical Investigation from African Firms

Using data from the World Bank Enterprise Surveys (WBES), our analysis focuses on the effect of perceptions of political instability on private investment at the firm level in Africa. We apply econometric techniques to correct for biases inherent in the data, such as measurement errors, missing observations, and the endogeneity problem. We used time series cross-section analysis employing the two-stage least squares (2SLS) method. Our results show that political instability has a negative and significant impact on business investment, irrespective of location of the firms. However, this effect is insignificant and weak for small firms. Furthermore, we identify a significant impact of administrative constraints, regulatory constraints and infrastructure constraints on investment. These findings highlight the importance of Strengthening political stability in order to stimulate investment, especially in small towns. Putting in place incentives and programmes to encourage employee training can improve business productivity.

Examining the effect of liquidity creation on banking profitability and stability: moderating role of political instability

PurposeThe paper aims to test the effect of liquidity creation on profitability and stability with the moderating role of political instability and its level of implication on the overall banking sector of Pakistan.Design/methodology/approachThis study uses the panel data estimation technique, including fixed- and random-effect model, by taking sample data of 28 banks of Pakistan that are providing their services from 2006 to 2019. Moreover, this study uses the Genreralized Method of Moments (GMM) estimation technique to check the robustness of the results.FindingsThe empirical outcomes of this study found a negative relationship of liquidity creation with profitability meanwhile positive relation with banking stability. However, this study shows a negative relation of political instability with liquidity creation, profitability and stability of overall banks of Pakistan.Practical implicationsThe findings of this paper recommended the vital role of liquidity creation in the profitability and stability of banks, especially in the decision-making process of the investors and bank managers, and how it is affected strongly in the presence of an unstable political situation. These findings may be helpful for policymakers to devise appropriate policies to maintain a fair field between state authority and financial institutions and also assist in formulating strategies to strengthen the banking sector of Pakistan to avoid financial turmoil in the future.Originality/valueAs per the knowledge of the authors, this study is the first contribution to examine the moderating effect of political instability on liquidity creation, profitability and stability of the overall banking sector of Pakistan.

Political Instability and Economic Growth in Ethiopia: An Empirical Analysis

This paper analyzes the effect of political instability on economic growth in Ethiopia since 2004 using ARDL regression approach to identify the existence of this correlation and the channels through which this impact happened. The paper found that political instability has a significant effect on economic growth and this impact is more significant through the direct channels more than the indirect effects through its effect on economic environment or investment and financial flows.

The Effect of Political Instability on the UK Stock Returns: Evidence from 2016 eferendum and the Major Events that Followed

This study examines the consequences of six events on the FTSE100 companies since the UK voted to leave the EU. These are the events that created political uncertainty leading to two General Elections within 30 months. The study examines the relationship between political instability and stock return abnormalities, using event study methodology and regression analysis to establish if such a link exists. Following each event, the UK stock market index declined except when Brexit was extended by six months (Event 5). The results of this study find a definite relationship between instability and return abnormalities, with the post-event abnormal returns proving to be the most significant over the event window. The industry variables were found to be most strongly linked with the CAR values out of all the independent variables, with the healthcare, utilities and basic materials industries exhibiting the most significant reactions. The findings of this study are an additional expectational tool for investors. It will be essential for investors during times of uncertainty.

Effects of Political Instability on Economic Growth in the Republic of Congo

Effects of Political Instability on Economic Growth in the Republic of Congo

Troubles in Tuva: Patterns of perimortem trauma in a nomadic community from Southern Siberia (second to fourth c. CE).

Warfare is assumed to be one of the defining cultural characteristics of steppe nomads in Eastern Eurasia. For the first-centuries CE, a period of political turmoil in Northern China and Southern Siberia, relatively few data are, however, available about the degree and variability of violence in these communities. Here, we provide new data on violence among steppe nomads during the first-centuries CE by analyzing the type, anatomical distribution, and demographic distribution of perimortem trauma at Tunnug1 (Tuva, Southern Siberia-second to fourth c. CE). Perimortem traumas were assessed on 87 individuals representing both sexes and different age classes. The timing of the lesions was assessed based on morphological criteria, including the absence and presence of bone reactive processes and the relative plasticity of the bone at the moment of impact. The distribution by age, sex, and anatomical location of trauma was analyzed by means of logistic models, Fisher's exact tests, and 3D visualizations. A total of 130 perimortem traumas, including chop marks, slice marks, penetrating lesions, and blunt traumas were identified on 22 individuals. Chop marks were mostly at the level of the skull and vertebrae and were likely caused by bladed weapons. Slice marks were found on the cervical vertebrae and cranium and may be the result of throat slitting and scalping by means of smaller bladed implements. Traumas were more frequent in males, and their presence is not correlated with age. This study adds new data to the few available regarding violence among steppe nomadic cultures and provides new insights about the effects of political instability on the life of the people inhabiting Eastern Eurasia during the early centuries CE.

Effect of Political Instability on the Performance of Mobile Telecommunication Organisations in South Africa

Effect of Political Instability on the Performance of Mobile Telecommunication Organisations in South Africa

The Effect of Political Instability on Tourism – A Case Study of Limbe Wildlife Centre, South West Region-Cameroon

The Effect of Political Instability on Tourism – A Case Study of Limbe Wildlife Centre, South West Region-Cameroon

Wars, public finances and interest rates for rural lending: evidence from 19th-century Lima

Purpose The purpose of this paper is to analyze the effect of political instability on rural credit in Lima between 1835 and 1865. In particular, it explores the effects of wars on interest rates for the agricultural sector. Design/methodology/approach The paper relies on primary sources for the study of the early credit market of Lima. In particular, the study relies on a sample of more than 800 notarized loans for 1835–1865, collected from the National Archives of Peru, to determine the effect of wars on the cost of credit. Findings The evidence shows that wars increased interest rates on rural loans and that the impact of wars on the cost of credit was greater when the State lacked fiscal resources. Political instability made funding more costly for landlords and farmers, especially in the late 1830s and early 1840s. Originality/value This paper is one of the few historical studies on the role of wars on rural credit in Latin America. It contributes to our understanding of the linkages between political instability and financial development.

The relationship between political instability and financial inclusion: Evidence from Middle East and North Africa

AbstractWhat is the effect of political instability on financial inclusion (FI) in the Middle East and North Africa region? Using data for 2011, 2014, and 2017, from the Global Findex database, we test the asymmetry relationship between political instability and FI using the probit model with sample selection and a multiplicative interaction test of the asymmetric model. We also propose and test a political stability threshold model that may trigger FI. We find that (a) political instability positively correlates with lower degrees of FI with higher levels of persistence; (b) higher incomes and higher education are associated with higher degrees of FI; (c) a lack of documentation required by formal financial institutions proves to be a major barrier to FI; and (d) inefficient mechanisms to determine real interest rates, corruption, oil reliance, unemployment, and religious tensions also negatively affect FI. Further, we calculate the political stability threshold level that will trigger FI to be ‐0.960 for the Middle East and North Africa region. The policymakers could enhance and promote FI and economic well‐being by targeting the minimum threshold value of political stability.

Political instability and its impact on economic growth: the case of Jordan

PurposePolitical instability may have far-reaching implications for economic performance. This paper aims to analyze the impact of political instability on economic growth by focusing on the case of Jordan, a small country located in the Middle East, which represents a highly political instable region.Design/methodology/approachThe analysis is performed by regressing different indicators for internal and external political instability on economic growth for the period from 1980 to 2015 using the fully modified ordinary least squares approach.FindingsThe results point at a significant impact of political instability on the economic growth of the country in all the specifications considered; in particular, the analysis reveals a positive impact of external political instability indexed by border countries’ political instability and a negative impact of internal political instability, as proxied by the number of crimes and cabinet changes. Further, regarding the effect of the level of freedom, the authors find evidence for the so-called conflict perspective.Originality/valueThis paper is original and relevant for two main reasons. First, it adds to the debate on the effects of political instability on economic growth, and hereby, disentangles the effects of internal and external political instability. Second, it makes an important contribution by focusing on the case of Jordan, which has received little attention in the literature on political instability so far, even though political instability is a constant threat to the country.

Effects of Political Instability in Venezuela on Malaria Resurgence at Ecuador–Peru Border, 2018

Mass migration from Venezuela has increased malaria resurgence risk across South America. During 2018, migrants from Venezuela constituted 96% of imported malaria cases along the Ecuador–Peru border. Plasmodium vivax predominated (96%). Autochthonous malaria cases emerged in areas previously malaria-free. Heightened malaria control and a response to this humanitarian crisis are imperative.

Technology interdependence and entry modes of the Taiwanese technological multinational companies: moderating effects of political instability, technological uncertainty, and Confucian dynamism

ABSTRACTThis study aims to examine how technology interdependence and three environmental variables, namely political instability, technological uncertainty and Confucian dynamism, in the host country collectively influence Taiwanese technological multinational company’s (MNC) entry mode choice between joint venture (JV) and wholly owned subsidiary (WOS). Grounded on theories of transaction cost economies and organisational design, this study hypothesises a positive technology interdependence–WOS relationship that can be explained by appropriation and coordination concerns. Moreover, the aforementioned relationship can be positively moderated by technological uncertainty while negatively moderated by political instability and Confucian dynamism. These hypotheses were examined and supported using logistic regressions in the analysis of 195 foreign entries undertaken by Taiwanese information and electronic MNCs.

Effects of political instability in consolidated destinations: The case of Catalonia (Spain)

Catalonia is one of the most successful tourist regions in Spain. This article analyses the immediate impact that the instability associated to the recent political situation in Catalonia has had on the arrivals and spending of international tourists in the region using the classical Box-Jenkins method (ARIMA) and the more recent Bayesian Structural Time-Series Models. The results obtained indicate that during the final quarter of 2017, political events led to a reduction in the arrivals and spending of tourists in the region, although whether this impact reached statistical significance depends on the estimation method used.

The Fate of Tourism during and in the Aftermath of Political Instability: Ethiopia Tourism in Focus

The vulnerability of tourism to variety of crises may result in the decline of tourist flow and receipt as well as in deforming the image of a destination. This particular snapshot case review has discussed the appearance of tourism during the political instability and its outcome, state of emergency. Web-sites, journals, books, mass media, personal observation and limited interview were used to gather information about the effect of political instability on tourism industry. Several tourist originating countries have issued travel advisories - some unbalance with the actual gravity of crisis- to Ethiopia putting the country in general at ‘High risk’ crisis level. Overall, the country has been suffering from the political instability. As a result, composite crisis management strategies have to be effectively developed for the sustainable and resilient tourism development.

Political Instability and its Effects on International Companies: A Case Study on Sierra Rutile Limited (Sierra Leone)

This research explains political instability and it effects on International companies, a case study on Sierra Rutile Limited (SL). The purpose of this paper is to explain the working conditions and operations of Sierra Rutile Ltd before the outbreak of the Instability in Sierra Leone, in 1991, the effect of political instability on Sierra Rutile Limited during the instability from 1991-2002, the present condition of the company since the end of the Instability in 2002, Mechanism and solutions in preventing business decline and failure in the future caused by political instability if it probably emerged. In this research a qualitative descriptive approach, phenomenology was recommended which focuses on political instability and it effects on international companies, a case study on Sierra Rutile Ltd, by the use of documentations and observations. The findings can also been drawn from the background of the Instability in the country, focusing on the operation of Sierra Rutile before, during and after the instability in Sierra Leone. This article will provide significant conclusions and recommendations to governments, feature researchers, Industries, companies, International business and global markets.

The Effect of Political Instability on Travel Movement in Ptolemaic Egypt

The Effect of Political Instability on Travel Movement in Ptolemaic Egypt

Political Instability and Economic Growth in Egypt

AbstractThis paper explores

Political instability and non-price loan terms in Lima, Peru: evidence from notarized contracts

This article analyzes the effects of political instability on the provision of credit in 1835–1865, paying special attention to non-price loan terms. By relying on a sample of more than 1,700 notarized records, the article shows that political instability had an important effect on the amount and length of loans. As Peru became politically more stable after the mid-1840s, private lenders made larger loans with longer maturities. Medium-term credit among approved loans was more frequent after political stabilization. Long-term credit, however, was not common during this period.

Nonlinear Monetary Policy Rules: An Essay in the Comparative Study on Egyptian and Tunisian Central Banks

The purpose of this paper is to evaluate the behavior of monetary authorities in Tunisia and Egypt, in response to changes in macroeconomic variables over time based on LSTR model. In this sense, we estimate Taylor-type equations for short-term interest rate in Tunisia and Egypt using quarterly data covering the period 1998.Q4–2013.Q2. We find strong evidence that the real decision-making process followed by these central banks varies from one central bank to another and that it exhibits nonlinear patterns that better capture special events and unexpected contingencies i.e., the terrorist attack in the US in September 2001, the global financial crisis in 2008, and the effect of political instability with the onset of the revolution. Additionally, the presence of asymmetries in the reaction function of the Tunisian and Egyptian Bank requires disconnection from their automatic pilot rules and use of judgement to make decisions.