Please use this identifier to cite or link to this item: http://hdl.handle.net/1822/20364

TitleHow does political instability affect economic growth?
Author(s)Aisen, Ari
Veiga, Francisco José
KeywordsEconomic growth; political instability; growth accounting; productivity.
Political instability
Growth accounting
Productivity
Economic growth
Issue date2013
PublisherElsevier
JournalEuropean Journal of Political Economy
Abstract(s)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.
TypeArticle
URIhttp://hdl.handle.net/1822/20364
DOI10.1016/j.ejpoleco.2012.11.001
ISSN0176-2680
Publisher versionhttp://www.sciencedirect.com/
Peer-Reviewedyes
AccessRestricted access (UMinho)
Appears in Collections:NIPE - Artigos em Revistas de Circulação Internacional com Arbitragem Científica

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