The Impact of Political Instability on the Economic Growth: An Empirical Analysis for the Case of Selected Arab Countries
International Journal of Business and Economics Research
Volume 8, Issue 1, February 2019, Pages: 14-22
Received: Jan. 2, 2019; Accepted: Jan. 24, 2019; Published: Feb. 21, 2019
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Khadiga Elbargathi, Business Economics Department, Faculty of Business, University of Jordan, Amman, Jordan
Ghazi Al-Assaf, Business Economics Department, Faculty of Business, University of Jordan, Amman, Jordan
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This study investigates the impact of political instability on the economic growth in Egypt, Jordan, Lebanon, and Tunisia for the period of 1996-2016. The study examines the existence of the long-run relationship between different five political indicators and the growth of the economy. The study utilized panel data analysis, using annual data covering the period of 1996-2016, for the four selected Arab countries. The empirical results of the study, using the Vector Error Correction Model (VECM), highlight the impact of different political instability indicators on economic growth. Moreover, these results indicate that there is a strong long-run relationship between the several political indicators upon the economic growth. More specifically, the results show that the control of the corruption and the rule of law indicators have the highest impact on the economic growth, while the regulatory quality has the lowest.
Political Instability, Economic Growth, Arab Countries, Panel Cointegration
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Khadiga Elbargathi, Ghazi Al-Assaf, The Impact of Political Instability on the Economic Growth: An Empirical Analysis for the Case of Selected Arab Countries, International Journal of Business and Economics Research. Vol. 8, No. 1, 2019, pp. 14-22. doi: 10.11648/j.ijber.20190801.13
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