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Political Instability Affect Economic Growth?

According to economists, political instability is considered a serious economic disease
Performance Political instability is likely to narrow the horizons of policy makers, leading to short-term economic policies. As a result, it is possible to change more frequently
Policies create fluctuations and thus negatively affect economic performance.
Considering its detrimental controversy over economic performance as far as politics is concerned
Instability is spreading across the country and the timing is amazing. As political instability
It is measured by the cabinet reshuffle, that is, the number of times in a year that a new prime minister is elected

Nominated and / or 50% or more of the cabinet posts are occupied by new ministers, really it is
Highlighting significant regional differences on a global scale.

Widespread political (and policy) instability in many countries
There has been interest in its negative effects over time and on its economic performance
Many economists. Thus, the profession produced considerable literature for documentaries
The negative effects of political instability on large-scale economic variables,
Among others, GDP growth, private investment and inflation. Use data on Alesina ET
113 countries from 1950 to 1982 to show that GDP growth in countries is significantly lower
And time with the potential to overthrow the government. In a recent article, Zhang-Ekpin also found that a high degree of political instability leads to low economic growth.
In terms of private investment, Elecina and Piroti reflect social and political instability
Uncertainty creates a political climate, which increases risks and reduces investment
Political instability also leads to higher inflation, as shown in Eisen and Vega .enough
Interestingly, the methods used to explain inflation in their paper are similar to those affected.
Economic growth; that is, political instability narrows the horizons of governments;
Preventing long-term economic policies conducive to better economic performance.


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