How Does Political Instability Affect Economic Growth?

How Does Political Instability Affect Economic Growth?
Author: Mr.Ari Aisen
Publisher: International Monetary Fund
Total Pages: 30
Release: 2011-01-01
Genre: Business & Economics
ISBN: 1455211907

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The purpose of this paper is to empirically determine the effects of political instability on economic growth. Using the system-GMM estimator for linear dynamic panel data models on a sample covering up to 169 countries, and 5-year periods from 1960 to 2004, we find that higher degrees of political instability are associated with lower growth rates of GDP per capita. Regarding the channels of transmission, we find that political instability adversely affects growth by lowering the rates of productivity growth and, to a smaller degree, physical and human capital accumulation. Finally, economic freedom and ethnic homogeneity are beneficial to growth, while democracy may have a small negative effect.


How Does Political Instability Affect Economic Growth?
Language: en
Pages: 30
Authors: Mr.Ari Aisen
Categories: Business & Economics
Type: BOOK - Published: 2011-01-01 - Publisher: International Monetary Fund

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The purpose of this paper is to empirically determine the effects of political instability on economic growth. Using the system-GMM estimator for linear dynamic
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John Taylor is one of the foremost economists of our generation. His ideas were implemented in central banks across the world during the period of price stabili
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Authors: Silvio Borner
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Type: BOOK - Published: 1998-04-12 - Publisher: Springer

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The state and its institutions are crucial for economic development: for better and for worse. This insight informs this important, up-to-date and authoritative
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"This volume is a collection of published and unpublished papers that the author has written over the last two decades during part of his tenure at the Internat