Economic Growth
Alireza Kazerooni; Hosein Asgharpur; Maryam Nafisi Moghadam
Abstract
The purpose of this study is to investigate the effect of political stability and democracy on economic growth in member countries of the Organisation of Islamic Cooperation (OIC). This study estimated panel regression using a Generalizes Method of Moments (GMM) framework, on a sample of 34 OIC member ...
Read More
The purpose of this study is to investigate the effect of political stability and democracy on economic growth in member countries of the Organisation of Islamic Cooperation (OIC). This study estimated panel regression using a Generalizes Method of Moments (GMM) framework, on a sample of 34 OIC member countries for the period of 1986-2014. In this research, a composite indicator of Internal Conflict, External Conflict, Military in Politics, Ethnic and Religius Tensions Religion in Politics has been used to calculate the political stability index using the principal components analysis method (PCA). The results of the research show that political stability and democracy have a significant positive role in the economic growth.
Abolfazl Shahabadi; Zohre Bahari
Volume 4, Issue 16 , November 2014, , Pages 72-53
Abstract
One of the most important macro-economic objectives of the countries is to create the necessary conditions for promoting economic growth. Among them, we can point to political stability and economic freedom. Political instability leads to wasting physical and human resources and social capital, which ...
Read More
One of the most important macro-economic objectives of the countries is to create the necessary conditions for promoting economic growth. Among them, we can point to political stability and economic freedom. Political instability leads to wasting physical and human resources and social capital, which will be considered as an economic rollback. Also, the rate of economic growth is associated with economic freedom index in every country. Economic freedom can lead to investment encouragment, promotion of skills, transfer of technology and efficient use of the investments through creation of relations of the market economy, private sector development, foreign trade development, remove unnecessary governmental regulations and provide the field for the development of productive activities. So, this study surveys the effects of political stability and economic freedom on economic growth in selected countries during the period 1996-2012. For this purpose, the effect of political stability and economic freedom indicators on economic growth has been tested by using GMM method for dynamic panel data models. The results indicate positive effects and statistically significance of political stability and economic freedom on economic growth in both groups of countries
