Impact Of Political Stability Research Articles

The impact of political stability on economic development after a military invasion: the experience of the countries of the Middle East and Southeast Asia

Economic development after a military invasion depends on a number of factors led by the establishment of peace and political stability. However, the restoration of stability is a difficult test for the post-war economy because of a number of reasons, which include the destruction of institutions, conflicting interests of the government and society, violation of legitimacy, humanitarian crisis, and many others. The aim of the article is to study the ways of achieving political stability and its impact on economic development after the military invasion. The SWOT analysis and case study methods were used during the research. Using the example of Iraq and Vietnam, the appropriateness of using such advantages as the availability of a resource base, opportunities to attract international support, and effective reforms in the economic sphere in the course of post-war recovery was established. Such limitations as the reduction of human potential, the destruction of infrastructure, and the increasing public debt should be taken into account in the course of recovery. The solution to the outlined problems can be effective fight against corruption, the strengthening of the institutional component, effective reforms in the economic sphere, as well as overcoming the environmental consequences of the war and restoring the physical and mental state of the population. The role of political stability in this process is significant. The main ways to achieve it include a team of patriot reformers, increasing the transparency of government actions, conducting inclusive policies and achieving social equality and welfare.

(The Impact of Political Stability on Economic Growth, Evidence from Developing Countries)

(The Impact of Political Stability on Economic Growth, Evidence from Developing Countries)

DRIVERS OF ECONOMIC PERFORMANCE: DO INSTITUTIONAL QUALITY AND FINANCIAL LIBERALIZATION MATTER? EVIDENCE FROM SANE AND ASIAN TIGERS

The aim of this study is to examine the impact of financial liberalization and institutional quality on the economic performance of the Asian Tigers and the SANE countries. The study used annual series that spanned the period from 1996-2020 under the framework of FMOLS. Findings of the study revealed that in the Asian Tigers, FDI inflows, FDI outflows, capital account openness and governance effectiveness had a positive and significant impact on the GDP per capita, but the impact of political stability was negative and significant. Results for the SANE countries indicated that both FDI inflows and trade openness impacted positively and significantly on the GDP per capita, while the impact of capital account openness was negative and significant. Consequently, the study is of the view that while it will be necessary for the SANE countries to upgrade their institutions in order to reap the benefits of financial openness, the Asian Tigers should stabilize their polity to improve their economy.
 Keywords: Institutional quality, FDI, GDP per capita, Financial development, Trade openness, Asian Tigers.
 JEL Classification: E02, F21, F43

BRICS-T ÜLKELERİNDE POLİTİK İSTİKRAR VE EKONOMİK BÜYÜME İLİŞKİSİ ÜZERİNE BİR ARAŞTIRMA

In recent years, it is seen that studies on the strong relationship between political stability and economic growth have increased. Political stability is an important element in the policies that political actors or political parties will implement during their term of office. İn this study, 43 percent of the world's population and the world's economy is estimated to comprise 30% BRICS-T countries to investigate the relationship between political stability and economic growth performance is the main purpose of the study. For this purpose, the relationship between political stability and economic growth in the BRICS-T countries, which are among the developing countries, in the 1996-2020 period was tested with the panel data method. In the study, Durbin-Hausman cointegration tests were used for the cointegration relationship when determining the degree of stasis of variables with the second generation CIPS unit root test. Finally, the second generation AMG estimator test was used to determine the coefficient and direction of the long-term cointegration relationship of variables. According to the results of the analyzes, it was found that the impact of political stability, inflation and general government expenditures on economic growth in the BRICS-T countries is statistically significant and negative.

The Impact of Political Stability on Foreign Direct Investment in Turkey: Evidence From Fourier ADL Cointegration Test

Araştırmacılar için doğrudan yabancı yatırım girişlerini etkileyen faktörlere yoğunlaşmak motive edici bir konu olmaya devam etmektedir. Literatürde politik istikrar düzeyi, yabancı yatırımları çekmeyi amaçlayan ev sahibi ülkeler için önemli bir konum avantajı olarak kabul edilmektedir. Bu çalışmanın amacı, Türkiye’de politik istikrar ile doğrudan yabancı yatırım girişleri arasındaki ilişkiyiampirik olarak test etmek ve bu ilişkiyi destekleyen daha iyi sonuçlar elde etmektir. Bu amaç doğrultusunda 1998Q1-2019Q4 dönemine ait üç aylık veriler kullanılmıştır. Serilerin durağanlık özelliği ADF ve Fourier ADF birim kök testleri kullanılarak sınanmıştır. İlk farklılıkları alındığında tüm değişkenlerin durağan olduğu tespit edilmiştir. Seriler arasında eşbütünleşme ilişkisinin varlığı Fourier ADL eşbütünleşme testi ile araştırılmıştır. Elde edilen bulgular Türkiye’de politik istikrar ile doğrudan yabancı yatırımlar arasında pozitif bir ilişkinin varlığını ortaya koymaktadır. Ampirik bulgular çerçevesinde Türkiye ekonomisine yönelik politika önerileri sunulmuştur.

Regime Capability and Relational Stakes in the Emerging World Order

Against the background of an emerging new world order in the 21st century, this paper offers a conceptual frame on the critical role that regime capability can play in modulating the relational stakes of a country. The text in that context offers the case of Nepal as also a few other countries to assess and explain the role and impact of political stability in enhancing relational dividend as well as the pace of democratisation and development. A three-fold typology of governance regimes-survival, subsistential and self-sustaining-is also presented to validate the arguments. The methodology used here is broadly comparative and empirical using ideas conceptualised to facilitate comparison, explanation and elaboration of the arguments forwarded in the course of discussion.

The Impact of Political Stability and Firm-Specific Variables on the Performance of Islamic Banks in Pakistan

Financial sector of a country plays pivotal role in the economic advancement. Therefore, the aim of this study is to analyze the performance determinants of 5 Islamic banks in Pakistan which remain active from year 2006 to 2018. By applying the Random Effect Model (REM), this study concluded that leverage and size of Islamic banks contributed significantly towards their performance. However, Islamic banks’ performance remained unaffected with respect to change in political stability level and liquidity. Therefore, this study has implication for Islamic banks managers that instead of considering political environment of Pakistan, focus should be made on bank specific matters.

Determinants of Foreign Direct Investment in Developed and Developing Countries: Impact of Political Stability

Stable political environment and prominent development of political institutions increase foreign direct investment flows by providing lower risks for investors. However, this impact can vary according to the development of the country. This study aims to investigate the impact of various indicators of political stability on foreign direct investment attraction for different economies distinguished by their development level. Our database includes 66 FDI-recipient countries and 98 FDI-investing countries for the period from 2001 to 2018. By applying the gravity approach and Poisson Pseudo Maximum Likelihood method with instrumental variables (IV PPML), we model bilateral FDI flows, incorporating variables reflecting various aspects of political stability formed by the principal components analysis. Interestingly, we found mixed results regarding the impact of political stability on FDI flows. In particular, political stability indicators were found to be insignificant, when analysing the bilateral FDI flows for the group of developed economies. We obtained similar result for the group of developing economies. However, political stability variables significantly influence FDI flows for countries with different development level, confirming the hypothesis that countries’ development affects bilateral FDI flows. Besides, we discover the significant difference between developed and developing countries referring to FDI-investors. Based on the obtained results, we highlight a few policy implications for developing and developed economies.

Implications of Political Stability and Financial innovations for Sectoral Economic Growth of Pakistan

The economic status of a country plays an important role in the lives of the citizens of both developed and developing countries. With the rapid increase in population, every country is trying to find new ways to boost its growth rate so that it may elicit the maximum number of people from poverty and can compare other countries in the form of improvement. The main objective of the study is to empirically investigate the impact of political stability and financial innovations on economic growth. Furthermore, the study also analyzes the impact of subsectors (Agricultural, Industry, and Services) of the economy on growth. A time-series co-integration autoregressive distributed lag (ARDL) model is used to investigate the general to specific sector's growth. The key empirical finding shows that political stability and financial development has a positive and significant impact on economic growth as well as its sub-sectors in the long-run. Trade liberalization has a positive impact on economic growth but most surprising results have been witnessed in agriculture growth for Pakistan.

THE ROLE OF POLITICAL STABILITY IN FOREIGN DIRECT INVESTMENT ATTRACTION: CROSS-COUNTRY ANALYSIS

This study is devoted to the evaluation and scrutiny of political stability as a determinant of foreign direct investment (FDI) inflows to different countries. The primary objective of the research is to estimate the impact and influence of various indicators of political stability on foreign direct investment inflows. The analysis is delivered based on a database on cross-country FDI inflows of 66 FDI-importer countries and 98 FDI-exporter countries, in the period between 2001-2018. This article uses the assumption that the impact of political stability might be different for both the groups of developed and developing countries. As the developed economies have higher political stability, they tend to attract larger amounts of foreign direct investment compared to developing economies, where the political situation can be less stable. Furthermore, the estimation applies the gravity approach, while the main method used for the econometric calculations is the Pseudo Poisson Maximum Likelihood (PPML) regression. The outcome revealed that in most cases the indicators of political stability had a positive impact on the foreign direct investment inflows. However, the results are not constant for all groups of countries. Therefore, if a developed country is an importer of investment, then most of the indicators of political stability become significant and have a positive influence on the foreign direct investment. At the same time, if the importer is a developing country, then for the investor-developed economy, political stability becomes a significant factor. Similarly, if the FDI-exporter is a developing economy, then determinants of political stability are insignificant. Based on these results, possible recommendations for refined government policies can be suggested.

The Impact of Political Stability on the Effectiveness of the Early Warning Systems in Predicting the Financial Crises: The Case of Jordan and Qatar

The research aims to identify the impact of political stability in determining the effectiveness of early warning systems in predicting financial crises. The research applied a standard descriptive approach.In general, when comparing the two countries before including the model for economic variables the results showed that the nature of the impact of economic variables is different as the index of the financial crisis in Jordan is affected by the import of goods and services while the most influential indicators in the early warning model for the occurrence of the financial crisis in Qatar is the index of exporting goods and services on the basis that the system Qatari financial is very sensitive to the subject of export of gas and oil. Also, the results showed that there is a very significant impact of political stability on the financial crisis, which is greater than the impact of economic indicators, and if the two countries differed in which indicators for political stability have the greatest impact on the occurrence of the financial crisis, in Jordan the most influential indicator was the government effectiveness variable in Qatar, the regulatory quality index was the most influential.

The impact of Political Stability and Absence of Violence/Terrorism on foreign direct investment flows in the Arab countries

The impact of Political Stability and Absence of Violence/Terrorism on foreign direct investment flows in the Arab countries

The impact of Political Stability and Absence of Violence/Terrorism on foreign direct investment flows in the Arab countries.

The impact of Political Stability and Absence of Violence/Terrorism on foreign direct investment flows in the Arab countries.

Impact of Political Stability and Managerial Ownership on Firm’s Profitability

The vibrant business sector is a dynamic segment for Pakistan’s economic development because it offers employment to a larger population of skilled and unskilled labour; creates foreign reserves through exports; and also satisfies local demand for the products. Moreover, the listed companies perform a significant function in the growth of an economy, however, on pragmatic grounds, access to capital is evidenced as a matter of grave concern for the business sector in Pakistan. Moreover, it has been observed that in order to reduce the firms’ agency costs, managerial ownership is utilized. Hence, in this essence, this research investigates the relationship of political stability, managerial ownership, dividends, sales, and total assets with the firm’s profitability in Pakistan during 2013-2017. The findings depict that the variables of political stability, total assets, dividends, and sales, positively and significantly affect the firm’s profitability, while, managerial ownership is insignificantly associated with profitability.

정치적 안정성과 은행 예대율이 OECD 국가의 고정자본 투자에 미친 영향 - 건설투자 분석을 중심으로 -

정치적 안정성과 은행 예대율이 OECD 국가의 고정자본 투자에 미친 영향 - 건설투자 분석을 중심으로 -

The Impact Of Political Stability On Foreign Direct Investment In South Asian Countries Focusing On Afghanistan

The Impact Of Political Stability On Foreign Direct Investment In South Asian Countries Focusing On Afghanistan

The Impact of Political Stability on Foreign Direct Investment in South Asian Countries Focusing on Afghanistan

The main objective of this research paper is to postulate the relationship between political stability and Foreign Direct Investment through panel and time series data analysis for the period of 1996-2017 in South Asia and Afghanistan respectively. This study uses the multiple regression models represented by Generalized Method of Moments (GMM) for South Asia as well as VAR and OLS for Afghanistan. Foreign direct investment is taken as dependent variable and political stability as independent variable including key control variables such as control of corruption, trade openness, and government expenditure. The regression result based on GMM revealed that political stability has positive impact on FDI inflow in South Asia and the rest of control variables such as control of corruption, trade openness are also significant with negative and positive relationships in turn. Furthermore, the findings of VAR and OLS showed that political stability and control of corruption have positive and negative impacts on FDI inflow in Afghanistan but trade openness and government expenditures are not even marginally significant. It is suggested by the result of the study that South Asian countries including Afghanistan are supposed to increase the level of political stability for attracting more FDI inflows through establishing appropriate policies and mechanisms.

Impact of Political Stability in India on Economic Growth in Last Decade

Impact of Political Stability in India on Economic Growth in Last Decade

BRICS-T Ülkelerinde Politik İstikrar ve Ekonomik Performans İlişkisi Üzerine Bir Analiz

In this study, the impact of political stability on economic growth in developing countries is examined using the annual data set of the period 1996-2016. In the study with panel data analysis method, political stability in developing countries is detected to assume a positive role in economic growth. Results Show that, %1 increase in political stability triggers economic growth by 1.27%. Furthermore, the economic growth of the model is found to be negatively related to the unemployment rate, inflation rate, and government expenditures; while positively related with trade openness according to the estimation findings.

Political stability and growth: An application of dynamic GMM and quantile regression

This paper studies the effect of political stability on economic growth by taking 120 developing countries over the period of 1996–2014. We apply relatively advanced dynamic two step system-GMM and quantile regression. Political stability is found to be a key determinant of economic growth. More importantly, political instability (or risk) is found to be higher in the OIC countries and is a deterrent to economic growth. Also, for the lower and middle income OIC countries, political instability appears to affect economic growth more severely perhaps due to the absence of strong economic and political institutions. Moreover, political instability is also found to be significantly higher in the oil-dependent OIC countries. Notably, political instability is likely to affect growth through the channels of investment and human capital accumulation in the developing countries. Finally, the impact of political stability and political instability on growth is found to be equally distributed across the OIC countries with higher or lower growth level. Therefore, the development of political and economic institutions along with human capital development is recommended for all the developing countries in general and the OIC countries in particular.