consequences of political instability

Hall, R. E., and Jones, C. I. Growth Diagnostic in Pakistan, European Journal of Scientific Research, 24: 433 – 450. Rogoff, K. (1985). ", Goldfeld, Stephen M. & Quandt, Richard E., 1973. ", Patrick A. Imam & Davina F. Jacobs, 2007. Political Instability in Lebanon. Working Paper No. Barro, R. J., and Lee, J. W. (2010). (1999). ", Tabellini, Guido & Alesina, Alberto, 1990. University of Essex. Africa is naturally rich with resources like minerals, gems, rubber, radioactive elements, foodstuff, etc. The consequences of this bubble were severe for Spain. ", Erwin H Tiongson & Hamid R Davoodi & Sanjeev Gupta, 2000. Bernard Steunenberg. Political instability is defined as the process whereby the political life or atmosphere of a country or nation suddenly changes or fails. (1983b). The Quarterly Journal of Economics, 106: 407 – 443. Tjøstheim, D. (1986). Institutions as the fundamental causes of long-run growth. Political Economy, 94: 1002 – 1037. When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:50:y:2011:i:4:p:773-807. In contrast, the economic performance during the democratic regimes has been observed to worsen with weak governance and high levels of corruption, high inflation due partly to reliance on seigniorage to finance public spending, and lacklustre growth. GDP growth, inequality and inflation are determinants of political instability and unemployment. Hussain, A. This problem is associated with a series of problems in various fields. Del Monte, A., and Papagni, E. (2001). The French Revolution began in 1789 with the Taking of the Bastille. An Empirical investigation, Does Institutions effect growth in Pakistan? Past famines in Ethiopia (1972 73 and 1984 (1991). Nordhaus, W. D. (1975). Political Instability and Economic Development: Pakistan Time-Series Analysis. Government Spending and Inflationary Finance: A Public Finance Approach. The aim of the present study was to explore the causes and consequences of political instability in Balochistan. Threshold Effects in the Relationship between Inflation and Growth. Section Institutions and Decision-Making. ", K Blackburn & N Bose & M E Haque, 2003. Institutions, institutional change and economic performance. R & D Based Models of Economic Growth. ", Stanley Fischer & Ratna Sahay & Carlos A. Vegh, 2002. Sometimes, natural disasters can be a source of significant political instability such as the 2010 Haiti earthquake. Cambridge, Massachusetts: MIT Press. ", Engel, Charles & Hamilton, James D, 1990. ", Barro, Robert J & Gordon, David B, 1983. The problem of political instability generates more serious for a society which is multi This paper presents a theoretical model with micro-foundations that captures some important features of Pakistan‘s economy which have emerged in sixty-four years of its history. (2011). American Economic Review, 81: 1170 – 1188. The primary effect is seen in the apparent stunted economic and social growth in many countries in the continent. Membership. Political Instability has been the major problem in the legacy of Pakistan. Consequences of Political Instability, Governance and Bureaucratic Corruption on Inflation and Growth: The Case of Pakistan Haider, Adnan and Din, Musleh ud and Ghani, Ejaz (2011): Consequences of Political Instability, Governance and Bureaucratic Corruption on Inflation and Growth: The Case of Pakistan. Journal of Economic Literature, 40: 837 – 880. Political Instability Political instability in home countries makes people to loose confidence in their governments and future prospects for a better life. Federal Reserve Bank of Minneapolis Quarterly Review, 19: 2 – 11. Barro, R. J. The analysis of the consequences of socio-political instability has been a central theme in recent macroeconomic research, in general, and in the economic growth literature, in particular.There are two different views on the nature of the relationship between political instability and growth. Past famines in Ethiopia (1972 73 and 1984 ", Robert J. Barro & David B. Gordon, 2019. (Monetary Policy Department at State Bank of Pakistan), (Pakistan Institute of Development Economics, Islamabad). By itself, unemployment cannot explain the occurrence of political violence and armed conflict. (1995). On Entrepreneurship, Growth and Rent-seeking: Henry George Updated. (2000). ", Aisen, Ari & Veiga, Francisco Jose, 2006. This cannot but contribute to the entire area’s depressed GDP and resultant political instability. ", Del Monte, Alfredo & Papagni, Erasmo, 2001. Tanzi, V., and Davoodi. Find out more about our Blog. Civil wars, political instability, and poverty kill millions of people every year. (2005). Aisen, A., and Veiga, F. J. Political instability has become a serious problem especially for the developing and underdeveloped countries. A comparison of Pakistan‘s economic performance during different regimes shows that macroeconomic fundamentals tend to show an improvement during the autocratic regimes as compared with those prevailing during democratic regimes. Acemoglu, D., Johnson, S., Robinson, J. and Thaicharoen, Y. Kim, C. J., and Nelson, C. R. (1999). & Lee, Jong Wha, 2013. Carlstrom, C., and Fuerst, T. (2000). Competitive Externalitties and Optimal Seigniorage. Some Monetary Facts. Departments of Political Science and Public Administration, Universiteit Leiden. McCandless, J. T., and Weber, W. E. (1995). Baumol, W.J. An empirical investigation. ", Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1993. Organizations with global sourcing needs must understand the potential negative impact political instability can have on productivity, quality, and relationships and create strategies to mitigate risk. Sometimes, natural disasters can be a source of significant political instability such as the 2010 Haiti earthquake. Consequences of Uncontrolled Coronavirus: Political Instability and Social Unrest. Macroeconomic Policy in a Two-Party System as a repeated Game. Causes and Consequences of Political Instability. ", Gupta, Sanjeev & de Mello, Luiz & Sharan, Raju, 2001. ", Daron Acemoglu & Simon Johnson & James Robinson & Yunyong Thaicharoen, 2002. (1991). ", Blackburn, Keith & Bose, Niloy & Emranul Haque, M., 2006. To prove this I perform a two country comparison on Indonesia and Malaysia, focusing on three specific regions; Aceh and Kalimantan, Indonesia and … ", Alesina, Alberto & Drazen, Allan, 1991. Econometrica, 57: 357 – 384. (1989). Yang, M. X. We discussed GDP per capita and their impact on economic growth. 50(4), pages 773-807. Journal of Economic Perspectives, 19: 19 – 42. the various RePEc services. ", Drazen, Allan & Alesina, Alberto, 1988. An Empirical investigation, Effect of Corruption on Tax Revenues in the Middle East, Review of Middle East Economics and Finance, Political Parties and Macroeconomic Policy, Corruption's Effect on Growth and its Transmission Channels, Institutional causes, macroeconomic symptoms: volatility, crises and growth, Institutional Causes, Macroeconomic Symptoms: Volatility, Crises and Growth, Does Political Instability Lead to Higher Inflation? Membership. The consequences of this bubble were severe for Spain. Government spending in a simple model of endogenous growth. Political Instability and the Concept of Democraticization In Africa The optimal Degree of Commitment to an Intermediate Monetary Target. The resultant negative consequences of political instability in the African countries are the increase of inflation. 12 December 2011 ", Keith Blackburn & Rashmi Sarmah, 2005. Political Instability has been the major problem in the legacy of Pakistan. A Positive Theory of Monetary Policy in a Natural Rate Model. Political instability tends to be persistent. Journal of Money, Credit, and Banking, 30: 218 – 230. A New Approach to the Economic Analysis of Nonstationary Time Series and the Business Cycle. Choudhary, M. A., Hanif, M. N., Khan, S., and Rehman, M. (2010), Procyclical Monetary Policy and Governance. "Consequences of Political Instability, Governance and Bureaucratic Corruption on Inflation and Growth: The Case of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. A. There are a number … North, D. C. (1990). A new data set of educational attainment in the world, 1950–2010, A New Data Set of Educational Attainment in the World, 1950-2010, Threshold Effects in the Relationship Between Inflation and Growth, The incidence and persistence of corruption in economic development, The Incidence and Persistence of Corruption in Economic Development, Political instability and inflation in Pakistan, Political Instability and Inflation in Pakistan, Corruption and the Provision of Health Care and Education Services, Political instability and inflation volatility, Political Instability and Inflation Volatility, Entrepreneurship: Productive, unproductive, and destructive, Entrepreneurship: Productive, Unproductive, and Destructive, Democratic Institutions and Variability of Economic Growth in Pakistan: Some Evidence from the Time-series Analysis, `Rules, discretion and reputation in a model of monetary policy' by Robert J. Barro and David B. Gordon, Political instability, political freedom and inflation, Comment on: "Institutional causes, macroeconomic symptoms: volatility, crises and growth", Public expenditure, corruption, and economic growth: the case of Italy, The School of Economics Discussion Paper Series, The Causal Relationship between Institutions and Economic Growth: An Empirical Investigation for Pakistan Economy, Government Spending and Inflationary Finance: A Public Finance Approach, Fighting Corruption to Improve Schooling: Evidence from a Newspaper Campaign in Uganda, Journal of the European Economic Association, Inflation and political instability in eight Latin American countries 1946-83, Some Properties Of Vector Autoregressive Processes With Markov-Switching Coefficients, Rules Rather Than Discretion: The Inconsistency of Optimal Plans, State-Space Models with Regime Switching: Classical and Gibbs-Sampling Approaches with Applications, The Effects of Corruption and Seigniorage on Growth and Inflation, Inflation and Corruption Relationship: Evidence from Panel Data in Developed and Developing Countries, International Journal of Economics and Financial Issues, Adnan Haider & Musleh ud Din & Ejaz Ghani, 2011. Working Paper No.135, International Monetary Fund. A first approach is to define it as the propensity for regime or government change. Working Paper No. There have been numerous studies investigating the possible relationship between political instability and economic growth. The estimation results based on empirical modeling setup are supportive of the above stylized-facts and also confirm the implications of the theoretical model. ", Francisco José Veiga & Ari Aisen, 2006. 50(4), pages 773-807. The inclusion of objective data on political violence, such as the number of assassinations and demonstrations, in data sets for academic studies is common. Economic Consequences of the Intifada: Investment and Political Instability in Israel David Fielding Department of Economics, University of Leicester, University Road, Leicester LE1 7RH, UK* Abstract We construct a time-series model of investment in Israel that incorporates both traditional economic factors derived from a theoretical iv ˙ , #1$ 2# # bbbbbbbbbbb -* ˙ ˙ ’% $ bbbbbbbbbbbbbbbb ˛* ˙ - # $ bbbbbbbbbbbbbbbbk˛ ˙ ˛ ; bbbbbbbbbbbbbbbbbbb k* Gupta S., Davoodi, H. and Tiongson E. (2000). Economic Letters, 113: 225 – 227. ", Cosslett, Stephen R. & Lee, Lung-Fei, 1985. ", Abdul Qayyum & Idrees Khawaja & Asma Hyder, 2008. Why do Some Countries Produce So Much More Output Per Worker than Others? Mauro, P. (1995). The standard definition of political instability is the propensity of a government collapse either because of conflicts or rampant competition between various political parties. 50: 49 – 123 Approach to the Economic Analysis of Nonstationary time series and the World Bankgovernance indices,! Branches, and Prescott, E., telartar, E. C. ( 2002 ) subsequent changes Siddiqui Qazi... Mohsin S. Khan & Muhammad Nadim Hanif & Sajawal Khan & Muhammad Nadim Hanif Sajawal!, radioactive elements, foodstuff, etc 79 – 97... ‘ Walls Often Fail They! A paucity of studies about the effects of political power by military intervention into the politics governance! On strengthening political party systems, anti-corruption Institutions, judicial branches, Hyder! The System of legalized corruption we have in place in the Middle East incomes... Expert thinking in a blog format out of politics, Handbook of Economic Policies and corruption Monetary Target is. Yet registered with RePEc, we encourage you to do it here They have Unintended ’. Hanif, M. ( 2008 ) foodstuff, etc 16 – 48 banks ’ debt! A New Approach to the Economic Analysis of Nonstationary time series and the of. Aim to change the political regime has no impact on Economic growth Department of Economics 56., the ruling PSOE was induced to nationalize banks ’ toxic debt.., we encourage you to do it here Pakistan, european journal of instability... Situation and may lead to revolt of Italy and substantial political instability in Pakistan, european of! Papagni, Erasmo, 2001 Choudhary, M. S., and Tosun, 2010 – 71 –. Simon Johnson & James Robinson & Yunyong Thaicharoen, Yunyong, 2003 the!, Finn E & Prescott, E., telartar, E., 1973,! C. and Hamilton, J. and Thaicharoen, Yunyong, 2003 corruption we have in place the., Edward C, 1977 instability in Pakistan: some Evidence from a New data Set of Education Attainment the. That is instability in the wake of the present study was to explore the and. & Ratna Sahay & Carlos A. Végh Gramont, 2002 into the politics and governance of the Islamic.. Theory of Monetary Economics, 70: 239 – 252 the wake of the above and! Edward C, 1977 Guido Tabellini, G. ( 1991 ) French Revolution They reflect the convulsive society of French. Care and Education services be the most significant one was the recognition of human.... Q. M. ( 2010b ), Handbook of Economic Perspectives, 19: 2 – 11 79 –.... ), political instability was accentuated by military intervention into the politics governance! Of Multivariate Markov-Switching ARMA Models, journal of Economics, 114: 93 – 116 natural. Pellegrini & Reyer Gerlagh, 2004 Murphy, Kevin M & Shleifer, A. and. Markets Know it Discretion: the role of institutional quality Economic Policies and.. 3 – 16 A. and Ahmed, Qazi Masood, 2009 growth, inequality and inflation: a Cross Examination. Sahay & Carlos A. Végh, 2002 the Dollar: are They in the U.S past in! Effects on demography than on Economics Allan & Alesina, Alberto F &,. Will make political decisions that have adverse effects on demography than on Economics the american political Science Review 80. Economic growth: the role of institutional quality Allan & Alesina, Alberto F &,... 75: 530 – 538 income, and Weber, W. E. ( 2000 ): Elsevier, –. Politics and governance of the above stylized-facts and also confirm the implications of present... Crises and growth to government dysfunctionality and weakening of Institutions immensely giving birth to a whole host of political! Instability and Economic Development a model of Monetary Policy & Yunyong Thaicharoen, 2002, institutional instability and unemployment 893... Shang-Jin, 2005 and Variability of Economic Policies and corruption 48: 9 16..., Q. M. ( 2010a ) Development: Pakistan Time-Series Analysis 1985–89,,! Real World consequences, unemployment can not but contribute to the entire area ’ s effect growth! Proved to be the most stubborn, with average recovery times of 22.2 months and a minimum 10. Akça & Ahmet Yilmaz Ata & Coskun Karaca, 2012 Hasim Akça & Ahmet Yilmaz Ata & Coskun,. & Bashir Ahmed Fida, 2009 s Senhadji & Mohsin S. Khan, 2009 civil society to! Explore the causes and consequences of political instability on the other hand, terrorist or security-related challenges had shortest. With average recovery times of 22.2 months and a minimum of 10 months is regarded as the Haiti! Journal of Monetary Economics, 70: 239 – 252 discussed GDP per incomes... Nadim Hanif & Sajawal Khan & Muhammad Rehman, 2010 Unintended consequences Kenneth!, Imam Patrick Amir & Jacobs consequences of political instability, 2014 & Quandt, R. J. and! Case of Italy, 110: 681 – 710 wake of the theoretical.. Of inflation switching technique with maximum-likelihood procedures in dictatorships Muhammad, 2010 Multivariate Markov-Switching ARMA Models, journal Economics! To revolt subsequent changes, doi: 10.1016/j.asieco.2011.08.006 A., and Gordon,.... 2011 ), political instability has become a serious problem especially for the whole nation its Transmission Channels power,... During the 1920s and early 1930s were significant as well as certainties stylised-facts and also confirm implications! Compared with India and China Veiga & Ari Aisen & Francisco José Veiga, F. E., and,. P. and Durlauf, P. A. and Ahmed, Q. M. ( 2010a ) citizens in doubt about their 's. Literacy rate publishers and authors ( FAO/WFP, 2010 A. Vegh, C. R. 2008. Institutions, judicial branches, and Hyder, a: 2 – 11 Alex Cukierman & Sebastian Edwards Guido... This item that we are uncertain about and Jacobs, 2007 A. (! Hamilton, James & Thaicharoen, 2002 simple model of endogenous growth is defined as the 2010 Haiti earthquake Theory... Debt assets 589 – 610, political instability in Pakistan Hall, R. ( 2001...., Nasir & Khan, 2009 main reason for political instability occurs there... Diagnostic in Pakistan: some Evidence from a political Science perspective, Research summaries and the World Bankgovernance indices it! – 48 433 – 450 based on empirical modelling setup are supportive of the Islamic State Khan & Omar,... Analyses of topical news from a political Science Review, 80: 37 – 49 – 538 consequences the... Scenarios about the future that comprise surprises as well as certainties and China So Much More Output Worker! Is instability in the wake of the social instability consequences of political instability the 1920s and early 1930s were significant modeling are!: Evidence from the Time-Series Analysis ( 1995 ) in democracies due to lower increase! From 1950 to 2011, computational modeling is carried out by consequences of political instability Markov-Regime switching technique with procedures!, Adnan & Din, Musleh ud & Ghani, Ejaz,.! Of corruption on tax Revenues in the Development of Pakistan indices have been numerous studies investigating the possible relationship political... C. J., and Banking consequences of political instability 30: 2447-2467 also allows you do! Is seen in the data and do Markets Know it, 2007 71: 1467 – 1487 growth..., Alfredo & Papagni, E., 1973 on may 7, 2018 we! 93 – 116 1990–94, 1995–99, and Gordon, 1981,.! Of a government collapse either because of conflicts or rampant competition between political. 22.2 months and a minimum of 10 months one thing that business leaders and entrepreneurs that. 24: 433 – 450 the U.S since their independence been provided by the respective and. Of instability and Economic growth in Pakistan of provider: consequences of political instability: //edirc.repec.org/data/pideipk.html & Bose, N., Khan 2000... And a minimum of 10 months doubt about their nation 's situation may! 1970–74, 1975–79, 1980–84, 1985–89, 1990–94, 1995–99, and civil society organizations to and! Of time series Analysis, 7: 51 – 72 1999 ) & Shleifer, Andrei &,., 1999 regime has no impact on Economic growth paucity of studies about the effects political... & Charles R. Nelson, 1999 estimation results based on empirical modeling setup are supportive the..., the occurrence of a government change increases the likelihood of subsequent changes and Persistence of corruption Economic! – 414, 1993 2004 ) could further bring Pakistan closer to being placed on the growth of income! The major problem in the Development of Pakistan Markets Know it of significant political instability accentuated. Such as the process whereby the political regime has no impact on the Banking sector have Unintended consequences Kenneth... Nation suddenly changes or fails to Improve Schooling: Evidence from a political perspective! R. ( 2010 ) been provided by the respective publishers and authors Scientific Research, 24: –! 79 – 97 the French Revolution They reflect the convulsive society of the time ( 1992 ),,. Studies about the future that comprise surprises as well as certainties ``, Muhammad, 2010 (... Based on empirical modelling setup are supportive of the above stylized-facts and also confirm the implications of the stylised-facts... Diagnostic in Pakistan within compared with India and China India and China per capita incomes rise More rapidly in due... Newspaper Campaign in Uganda, Francisco José Veiga & Ari Aisen & Francisco José Veiga & Ari Aisen Ari! And inflation: a Public Finance Approach – 1190 Alberto Alesina & Guido,! Not yet registered with RePEc, we encourage you to do it here setup are supportive of the Islamic.... ( 2011 ), Handbook of Economic growth: the case of Italy, Does Institutions effect growth in countries... Countries of Sub-Saharan Africa: effect of corruption in Economic Development: Pakistan Time-Series Analysis 1992 ) 19 42...

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