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The Impact of Political Instability on the Economic Growth: An Empirical Analysis for the Case of Selected Arab Countries

Received: 2 January 2019     Accepted: 24 January 2019     Published: 21 February 2019
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Abstract

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.

Published in International Journal of Business and Economics Research (Volume 8, Issue 1)
DOI 10.11648/j.ijber.20190801.13
Page(s) 14-22
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Political Instability, Economic Growth, Arab Countries, Panel Cointegration

References
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Cite This Article
  • APA Style

    Khadiga Elbargathi, Ghazi Al-Assaf. (2019). 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, 8(1), 14-22. https://doi.org/10.11648/j.ijber.20190801.13

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    ACS Style

    Khadiga Elbargathi; Ghazi Al-Assaf. The Impact of Political Instability on the Economic Growth: An Empirical Analysis for the Case of Selected Arab Countries. Int. J. Bus. Econ. Res. 2019, 8(1), 14-22. doi: 10.11648/j.ijber.20190801.13

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    AMA Style

    Khadiga Elbargathi, Ghazi Al-Assaf. The Impact of Political Instability on the Economic Growth: An Empirical Analysis for the Case of Selected Arab Countries. Int J Bus Econ Res. 2019;8(1):14-22. doi: 10.11648/j.ijber.20190801.13

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  • @article{10.11648/j.ijber.20190801.13,
      author = {Khadiga Elbargathi and Ghazi Al-Assaf},
      title = {The Impact of Political Instability on the Economic Growth: An Empirical Analysis for the Case of Selected Arab Countries},
      journal = {International Journal of Business and Economics Research},
      volume = {8},
      number = {1},
      pages = {14-22},
      doi = {10.11648/j.ijber.20190801.13},
      url = {https://doi.org/10.11648/j.ijber.20190801.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190801.13},
      abstract = {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.},
     year = {2019}
    }
    

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    T1  - The Impact of Political Instability on the Economic Growth: An Empirical Analysis for the Case of Selected Arab Countries
    AU  - Khadiga Elbargathi
    AU  - Ghazi Al-Assaf
    Y1  - 2019/02/21
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    N1  - https://doi.org/10.11648/j.ijber.20190801.13
    DO  - 10.11648/j.ijber.20190801.13
    T2  - International Journal of Business and Economics Research
    JF  - International Journal of Business and Economics Research
    JO  - International Journal of Business and Economics Research
    SP  - 14
    EP  - 22
    PB  - Science Publishing Group
    SN  - 2328-756X
    UR  - https://doi.org/10.11648/j.ijber.20190801.13
    AB  - 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.
    VL  - 8
    IS  - 1
    ER  - 

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Author Information
  • Business Economics Department, Faculty of Business, University of Jordan, Amman, Jordan

  • Business Economics Department, Faculty of Business, University of Jordan, Amman, Jordan

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