scholarly journals Lost Decades: Postindependence Performance in Latin America and Africa

2007 ◽  
Vol 67 (4) ◽  
pp. 917-943 ◽  
Author(s):  
Robert H. Bates ◽  
John H. Coatsworth ◽  
Jeffrey G. Williamson
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
Political Instability ◽  
Political Stability ◽  
Violent Conflict ◽  
Colonial Rule ◽  
Time And Space ◽  
Half Century ◽  
Economic Stagnation

Africa and Latin America secured independence from European colonial rule a century and half apart: most of Latin America by the 1820s and most of Africa by 1960. Despite the distance in time and space, they share important similarities. In each case independence was followed by political instability, violent conflict, and economic stagnation lasting for about a half-century. The parallels suggest that Africa might be exiting from a period of postimperial collapse and entering one of relative political stability and economic growth, as did Latin America almost two centuries ago.

scholarly journals Regime Types or Party Systems: What Matters More For Political Instability In The Developing World?

2015 ◽  
Vol 3 (2) ◽  
pp. 28
Author(s):  
M. Moniruzzaman
Keyword(s):  
Latin America ◽  
Party System ◽  
Developing World ◽  
Political Instability ◽  
Political Stability ◽  
Party Systems ◽  
Dominant Party ◽  
Regime Types ◽  
What Matters

<p>Political stability is desired by every state. But is it contingent upon regime types or party systems? Existing studies on political stability suggest that regimes such as authoritarianism, democracy, and dictatorship and their variants have variously influenced political stability. Some have proved to be friendly with political stability in certain countries, while counterproductive for some other. However, the existing literature has exclusively focused on regime types alone neglecting the factor of party systems. This article argues that not only regime types but party systems also influence political stability. Based on data from Asia, Africa and Latin America this article examines the following four assumptions. Firstly, absolute monarchy and absolute authoritarianism together with no or one party system generally maintain political stability. Secondly, constitutional monarchies together with multiparty system generally maintain political stability. Thirdly, presidentialism together with dominant party system generally maintains political stability. And finally, parliamentarianism together with multi-party system is generally negatively related with political stability.</p>

scholarly journals Moderating Effect of Political Instability on ICT and Economic Growth Nexus in Kenya: ARDL Bound - Co-Integration Approach

2021 ◽  
Vol 04 (10) ◽  
Author(s):  
Matundura Erickson ◽  
Keyword(s):  
Economic Growth ◽  
Political Instability ◽  
Political Stability ◽  
Moderating Effect ◽  
High Interest ◽  
Long Run ◽  
The Government ◽  
The Impact ◽  
Adf Test ◽  
The Relationship

The government has attempted to target specific macroeconomic factors in order to stimulate economic growth in Kenya through monetary and fiscal policies. Despite these efforts, Kenya's GDP growth is hampered by high interest rates and high interest rate volatility. Kenya's ability to address macroeconomic instability hinges on its ability to increase economic growth. Auxiliary evidence shows that perspectives on the relationship between ICT and economic growth are segmented. The goal of this study was to determine the impact of ICT on economic growth in Kenya, as well as the moderating effect of political instability on the relationship. The research was based on Solow's theory of growth. An explanatory research design was used, with data spanning from 1990-2020 obtained from Kenya Bureau of Statistics. In the empirical analysis, the study used the bound test to test for a long-run relationship and the Autoregressive Distributed Lag model (ARDL) to evaluate the relationship between the variables. The data was subjected to an Augmented Dickey Fuller (ADF) test to determine stationarity.The long run ARDL results indicated that the coefficients of; ICT rate were insignificant . However with the introduction of political instability as the moderator ICT was significant and positively affected economic growth. Political instability moderated the relationship between ICT ( and economic growth. As a result, promoting effective governance should help to improve political stability. The findings of this study will help the government figure out how to address the problem of low economic growth. According to the study, the government should invest in the ICT sector to improve its accessibility and affordability. Additionally, the government should work to improve political stability and good governance by gradually establishing institutions that uphold the rule of law and provide security.

scholarly journals Innovation and Sustainable Development: Does Aid and Political Instability Impede Innovation?

SAGE Open ◽  
2020 ◽  
Vol 10 (4) ◽  
pp. 215824402097302
Author(s):  
Muhammad Athar Nadeem ◽  
Zhiying Liu ◽  
Haji Suleman Ali ◽  
Amna Younis ◽  
Muhammad Bilal ◽  
...  
Keyword(s):  
Economic Growth ◽  
Political Instability ◽  
Political Stability ◽  
Policy Implications ◽  
Innovation Activities ◽  
Adverse Impacts ◽  
Long Run ◽  
Market Shares ◽  
Auto Regressive

Sound innovation capabilities help the nations not only to capture bigger market shares but also to sustain long-term economic growth. Innovation is of vital importance at all stages of a country’s development as it promotes productivity, value creation, employment, economic growth, and sustainability. Several factors can affect the innovation activities of a country. For example, peaceful and stable environment, effective macroeconomic designs, sound institutional quality, and efficient utilization of resources are of great significance for a country to nourish economic, business, and market activities. Applying the Auto Regressive Distributive Lag approach to cointegration, this study investigates the short- and long-run impacts of aid, political instability, and terrorism upon the innovation of a laggard economy, namely, Pakistan. Our findings reveal that aid, political instability, and terrorism all have adverse impacts on innovation. Results across robustness checks remain the same. This study is of strong policy implications for policymakers, governments and opposition parties, and security and intelligence agencies to develop sound macroeconomic designs and policies, bring harmony for political stability, and curb terrorism, respectively.

Moderation Effects of Political Instability and Tourism on Economic Growth

2021 ◽  
Author(s):  
Shrabani Saha ◽  
Ghialy Yap ◽  
Yong Rae Kim
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Political Instability ◽  
Political Stability ◽  
Low Income Countries ◽  
Moderator Variable ◽  
Sustainable Tourism Development ◽  
Inbound Tourism ◽  
Generalized Methods Of Moments ◽  
High Level

This study examines the impacts of inbound tourism on economic growth by using panel system-generalized-methods-of-moments techniques for over one hundred countries during the period 1995-2016. Using political instability as a moderator variable, the evidence shows that inbound tourism alone can lead to economic growth along with an increase in the standard control variables such as capital formation, education, and R&D expenditure. Nevertheless, a significant adverse effect on economic growth is revealed in the presence of medium to high political instability. The marginal impact of inbound tourism on economic growth with a high level of political instability is more detrimental in low-income countries than in their counterparts. Developing countries, which are heavily reliant on tourism, suffer more severe damages to economic growth when there is increasing political instability. Therefore, the analysis concludes that political stability is one of the key players in sustainable tourism development and economic growth.

scholarly journals Temperature Shocks and Economic Growth: Evidence from the Last Half Century

2012 ◽  
Vol 4 (3) ◽  
pp. 66-95 ◽  
Author(s):  
Melissa Dell ◽  
Benjamin F Jones ◽  
Benjamin A Olken
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Growth Rates ◽  
Political Stability ◽  
Economic Outcomes ◽  
Industrial Output ◽  
Agricultural Output ◽  
Half Century ◽  
Poor Countries ◽  
Negative Impacts

This paper uses historical fluctuations in temperature within countries to identify its effects on aggregate economic outcomes. We find three primary results. First, higher temperatures substantially reduce economic growth in poor countries. Second, higher temperatures may reduce growth rates, not just the level of output. Third, higher temperatures have wide-ranging effects, reducing agricultural output, industrial output, and political stability. These findings inform debates over climate's role in economic development and suggest the possibility of substantial negative impacts of higher temperatures on poor countries. (JEL E23, O13, Q54, Q56)

scholarly journals An Economic Impact of Political Instability: An Evidence from Pakistan

2021 ◽  
Vol 3 (1) ◽  
pp. 47-54
Author(s):  
Abdul Rehman Nawaz ◽  
Usama Anwar ◽  
Fizza Aquil
Keyword(s):  
Economic Growth ◽  
Political System ◽  
Political Instability ◽  
Negative Relationship ◽  
Political Stability ◽  
Economic Resources ◽  
The Political ◽  
Historical Discourse ◽  
Government Institutions ◽  
Political Tension

The economy of Pakistan has been badly damaged by the political instability in the country. Despite its enormous economic resources, Pakistan’s economy remained under dark shadows during most of its historical discourse. The economic indicators describe a significant relationship between politics and the economy of Pakistan. The following study, by reviewing previous studies, concludes that there is a negative relationship between political instability and economic growth in Pakistan from 2000 to 2019. Political instability flourished corruption and reduced the economic growth of the country. Moreover, a weak political system and government institutions could not resist the political tension in the country. The study finally concludes that political instability reduces economic growth in the country and economic growth reinforces political stability in the country.

scholarly journals Political instability and economic growth: an empirical evidence from the Baltic states

2011 ◽  
Vol 59 (2) ◽  
pp. 81-88 ◽  
Author(s):  
Ladislava Grochová ◽  
Luděk Kouba
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Political Instability ◽  
Political Stability ◽  
Single Equation ◽  
Equation Model ◽  
Political Economics ◽  
Necessary Condition ◽  
Baltic States ◽  
The Baltic

For more than last 20 decades, new political economics has been dealing with theories of economic growth (for example influential contributions by Mancur Olson, Dani Rodrik). However, less attention has been paid to their empirical verification. The new political economics growth theory defines some factors that are necessary for economic growth among which political stability. Our aim is to test the theory focused on political stability empirically in order to enrich the studies with recent European results. The paper uses a single-equation model to reject a hypothesis that political stability is a necessary condition for economic growth finding a relationship between economic growth and political instability. A demonstration that political stability is not a crucial factor for economic development in general then represents the main goal of the contribution. There are distinguished two types of political instability – elite and non-elite – in topical literature. While non-elite political instability concerns about violent coups, riots or civil wars, elite political instability is represented with “soft changes” such as government breakdowns, fragile majority or minority governments. A number of government changes is used as a proxy of elite political instability. The disproof of the hypothesis is demonstrated on data from the Baltic states where number of government changes takes place and still fast economic growth could be seen within last two decades. Since it is shown that political instability has almost no impact on economic growth, we consider the hypothesis regarding a necessity of political stability for economic development to be only a specific non-generalizable case.

Consociationalism in South Africa: the Buthelezi Commission and Beyond

1983 ◽  
Vol 21 (1) ◽  
pp. 77-112 ◽  
Author(s):  
Roger J. Southall
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Political Power ◽  
Political Stability ◽  
Violent Conflict ◽  
Decent Society ◽  
Racial Harmony

The widespread perception that South Africa is moving inexorably towards violent confrontation has led to increasing attention being paid to consociationalism as providing a potentially workable framework whereby the White minority's present monopoly of political power could be nudged towards a democratic form of rule in a reasonably just, evolutionary, and non-violent manner. Not surprisingly, most such speculation has been undertaken by those of either a liberal or a genuinely conservative (as opposed to reactionary) bent who, whilst certainly evincing some apprehension that racial polarisation could result in the overthrow of the existing capitalist order, register rather more concern that any prolonged violent conflict would entail not only the sheer human misery that is the inevitable accompaniment of war, but would also be massively destructive of any long-term prospects for political stability, economic growth, racial harmony or, more simply, any form of reasonably decent society.

scholarly journals Political Stability and Economic Growth: Reflections on Indian Economy

2017 ◽  
Vol 4 (01) ◽  
Author(s):  
Shreya Raval ◽  
Prakash Salvi
Keyword(s):  
Economic Growth ◽  
Political Parties ◽  
Political System ◽  
Party System ◽  
Political Instability ◽  
Sufficient Conditions ◽  
Political Stability ◽  
Economic Policies ◽  
Dominant Parties ◽  
Political Conditions

Efficient economic policies and their implementation are only sufficient conditions of assured economic growth. However, the type of political structure and stability of the same form the necessary conditions of economic growth for any nation. The political conditions should be ideal and conducive to the nature of the economy. This paper attempts to define political system and its inter-relation to economic development. It further progresses to define political stability under the adopted political system of an economy. It also attempts to explain a state of political instability and its channels of transmission on economic growth. Further, an attempt to define various measures of political stability is made and the significance and impact of the variables is mentioned. Political polarisation in India is higher as it has a multi-party system with two major political parties and many regional dominant parties. Thus, it is difficulty to take a unitary view on the question of political instability and economic growth.

COVID-19 will threaten African political stability

2020 ◽  
Keyword(s):  
Economic Growth ◽  
Human Rights ◽  
Public Services ◽  
Political Instability ◽  
Political Stability ◽  
Limited Resources ◽  
Medium Term ◽  
Security Forces ◽  
Content Type ◽  
Ordinary Citizens

Subject COVID-19 and African democracy. Significance The spread of COVID-19 across Africa is likely to exacerbate political instability by causing disruption within governments, exacerbating existing challenges such as hunger and poverty, triggering debt crises and increasing tensions between ordinary citizens and the security forces. Impacts The use and extension of emergency powers in a number of countries represents a threat to human rights and the consolidation of democracy. Slowing economic growth will undermine the ability of governments to provide basic public services in the medium term. The reputation of the security forces will further deteriorate as they struggle to enforce lockdowns with limited resources and discipline.

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