Political Instability and Growth: Case of the Developing Countries

Abstract

The paper attempted to examine the causal relationship between political instability and growth. Currently, the world continues to record huge number of popular revolutions in the region MENA, to improve the social environment and to consolidate implementing an effective governance. Although, the uprising has harmed the financial and economic situation in these countries, and became a threat for the stability of the countries, in overall.

The manuscript accounts for the impact of political instability on the growth of the developing countries, in the shadow of the widespread of the revolutions since 2011. The paper attempted to illuminate the reality of the relationship between political environment and growth through the estimation of panel, comprising 69 developing countries 1985-2012.

In the current paper, the authors conducted an empirical investigation, in which we bore out the claims raised in many surveys and the conclusions drawn by several authors about the harmful impact of political instability on the fundamental bases of the economy, in countries recording political instability.