While the most noticeable impact is a decline in equity prices, many countries facing higher political risk factors experience reduced foreign direct investment (FDI), which can prove destabilizing. The empirical results of the study The findings of this research will be used to formulate recommendations for key national and international stakeholders regarding programming and next steps. Profits in Nigeria appear to be higher than elsewhere, while Shell occupies a dominant market position unrivalled in most other countries. Political instability has become a serious problem especially for the developing and underdeveloped countries. Political parties provide the people with a variety of choices to choose from when casting their votes. The Impact of Political Instability on the Economic Growth: Business Economics Department, Faculty of Business, University of Jordan, Amman, Jordan, political indicators and the growth of the economy. governments. 1.2 The effect of political instability on economic growth . This paper explores the link between political instability and economic growth in Jordan, which is a lower middle-income country located at the heart of the Middle East. A supporter of Lebanon’s Hezbollah gestures as he holds a Hezbollah flag in Marjayoun, Lebanon on May 7, 2018. GROWTH AND POLITICAL INSTABILITY: A THEORETICAL APPROACH WITH MACRO-DYNAMIC SIMULATION, Political Instability and Economic Growth in Egypt, Macroeconomic Instability and Its Impact on Gross Domestic Product: An Empirical Analysis of Pakistan, The Economic Consequences of the Political Instability in Arab Region, Political Institutions, Policy Choice and the Survival of Leaders, Political Instability and Economic Performance: A Panel Data Analysis, Political Instability, Corruption, and Economic Growth: Evidence from a Panel of OECD Countries, Political Instability and Economic Growth: Evidence from Jordan, Political instability and business: focus on Shell in Nigeria, Anti-dumping and safeguards in the Euro-Mediterranean Association Agreements, Comparative Study: Tax Systems in Six Arab Countries. Some of these indices have been developed primarily for academic or policy purposes, such as the POLITY indices and the World Bankgovernance indices. The results show that the impact of political instability on economic growth is negative and significant for all indexes of political instability used in the case of Egypt. The study examines the existence of the long-run relationship between different five political indicators and the growth of the economy. economic growth, such the following is used: LHC: the natural logarithm of the human cap. P olitical instability, defined as volatility in electoral politics, is on the rise in Western democracies and shows no signs of abating. This chapter builds a risk indicator of political instability that draws on the burst of academic research on political economy from the last decade. Politicians can and do change laws that affect investors, which can inhibit long-term investment plans. Spring was on the investment sector in Tunisia . In view of the special characteristics of the EC’s relationship with Malta, Cyprus and Turkey, the EC’s association agreements with these countries are not reviewed in this study. It finds political stability to be the degree to which formal roles and structures coincide with informal roles and structures within a political object. Political instability is the likelihood of having demonstrations, forms of violence, workers going on strike or the possibility of a coup d'état. The study utilized panel data analysis, using annual data covering the period, that there is a strong long-run relationship between the several political indicators upon the economic growth. macroeconomic variables and FDI of Pakistan. For Moreover, these results indicate that there is a strong long-run relationship between the several political indicators upon the economic growth. << The Panchayat system that was introduced in 1960 accelerated deforestation in the Tarai. with the outcomes of the majority of the literature. WikiMatrix. Political stability is the durability and integrity of a current government regime. Shell established a first mover advantage in the 1950s, since Nigeria was a British colony until 1960 and British oil companies were given preferential treatment. T, thoroughly different in comparison to that of this study, the performance of the macroeconomic agents. We examine time-series data from 1972 to 2013, using the Cointegration approach to determine the short-term and long-term relationships. Join ResearchGate to find the people and research you need to help your work. This work is tending to use theoretical model (economic dynamic model), trying to explain the effect that Political Instability can have on the economic growth.
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