The Relation Between Political Stability and Economic Growth: TheTurkish Case (original) (raw)
Related papers
Political Stability & Economic Growth in Turkish Economy Since 1996
2018
Political stability is one of the key indicators of indigenous development. So the nexus between sustainable political stability and economic growth is very crucial for almost all of the developing countries. My paper aims to focus on the relations between those variables for Turkish economy. World Bank has been searching the political stability of countries since 1996 by producing data set for different variables in scientific ways. In this study my intention is to provide information about the impact of political stability rankings on Turkish economic growth during a specific time frame.
Political instability and economic growth in Turkey
2017
This thesis investigates the relationship between political instability and Gross Domestic Product (GDP) growth rate (%) in Turkey from the first quarter of 1961 to the second quarter of 2017. Proxy variables are constructed which quantify political instability and examine the effect on GDP growth. The relationship between dependent variable and the political instability proxies are examined with the time series regression analyses. Autoregressive Conditionally Heteroscedastic (ARCH) method is used in order to model the heteroscedasticity and volatility effect. Using ARCH (1) model, a strong link is found among many of political instability variables and GDP growth rate of Turkey. According to the empirical results, coup d'états, attempts & memorandums, Cyprus operation & US embargo, ideological & denominational events, Gulf War I & Gulf War II and 1994, 2001 & 2008 economic crisis negatively affected the growth, while elections and regime change were beneficial to the growth. On the other hand, natural disasters and high casualty terrorist bombings had no significant effect on Turkey's economic growth. Keywords: Economic Growth, Political Instability, Time Series Regression, Autoregressive Conditional Heteroscedasticity, Economy of Turkey
Political Stability and Financial Development: Evidence from Turkey
Fiscaoeconomia, 2019
The interaction between political decisions and economic indicators constitutes the main subject of political economy and it surfaces the performance that policymakers display in the point of the solution of economic problems. In other words, the most significant results of political decisions have been seen in the field of economy. In this regard, the stability of political decisions and the existence of political stability which is defined as political order affect economic order, development and stability as well. The economic stability that affects the welfare level of one country have several determinants like the macroeconomic indicators such as general level of prices, rate of employment, level of production and balance of payments, and the continuity of political order, the size of military power, corruption, accountability in politics, political transparency and fair distribution of income. In this study, on the other hand, how political stability affects financial development in the field of economy has been researched. For that purpose, Granger causality test has been applied for Turkey by using the data of financial development and political stability belonging to the years of 1970-2017. In the result of analysis, a long-termed relationship between financial development and political stability was discovered and a causality from financial development to political stability was discovered as well.
Journal of Accounting and Finance in Emerging Economies
This research paper empirically investigates the outcome of Political stability on economic growth (EG) of Pakistan for the period of 1988 to 2018. Political stability (PS), gross fixed capital formation (GFCF), total labor force (TLF) and Inflation (INF) are important explanatory variables. Whereas for model selection GDPr is used as the dependent variable. To check the stationary of time series data Augmented Dickey Fuller (ADF) unit root (UR) test has been used, and whereas to find out the long run relationship among variables, OLS method has been used. The analysis the impact of PS on EG (EG) in the short run, VAR model has been used. The outcomes show that all the variables (PS, GFCF, TLF and INF) have a significantly positive effect on the EG of Pakistan in the long run period. But the effect of PS on GDP is smaller. Further, in this research we are trying to see the short run relationship between GDP and other explanatory variables. The outcomes show that PS does not have su...
Panoeconomicus
This article examines the nexus between democracy and economic growth while taking into account the role of political stability, using dynamic panel data model estimated by means of the Generalized Method of Moments (GMM) over the period 1998 to 2011 for 17 Middle East and North Africa (MENA) countries. Our empirical results showed that there is a bidirectional causal relationship between democracy and economic growth. Moreover, it was found that the effect of democracy on economic growth depends on the political stability. The results also indicated that there is important complementarity between political stability and democracy. In fact, political stability is a key determinant variable of economic growth. Eventually, democracy and political stability, taken together, have a positive and statistically significant effect on economic growth. This finding suggests that, if accompanied by a stable political system, democracy can contribute to the economic growth of countries. Thus, t...
Political Stability and Economic Growth in Asia
This study investigates the effects of various factors of political instability on economic growth in selected ten Asian economies during 1990-2005. Our empirical findings show a close relationship between political stability and economic growth. We have analyzed the data by using ordinary least squire econometrics methods, which conclude that 32.35 scores increasing of index of political stability leads to one percent increase in economic growth. From these finding based on Asia experiences, we can conjecture that political stability plays a dominant role in determination of economic growth and sources of capital accumulation. This study uses the average proportion methods and Tinbergen diagrams to show the relative importance of political stability than economic freedom to accumulate capital, measured by four sources of capital accumulation which are proximate causes for economic growth. The results also clearly show that the role of political stability in accelerating economic growth is more vital than economic freedom.
Politics and Economic Growth: The Case of Turkey Between 1980 - 2016
Politics and Economic Growth: The Case of Turkey Between 1980 - 2016, 2017
We have examined the economic growth of Turkey between 1980 and 2016. This period was divided into three sub-periods, 1980 - 1993, 1994 - 2001 and 2002 - 2016. We calculated the total factor productivity with the growth accounting approach. In the period of 2002-2016 TFP has the highest value. However, due to the low rate of growth, TFP contributed to the growth in the 1994-2001 period with a maximum of 40.5%. On the other hand, we can say that in the period of single party governments, Turkey's economy has grown above the average of 36 years. On the contrary, the growth rates of the coalition and minority governments have been reduced due to economic and political instability.
The Role of Political Stability in Achieving Economic Development
Achieving economic development and increasing economic growth are among the priorities of policymakers in Egypt. The 25th of January 2011 was coincided with sharp decline in economic performance indicators. This resulted in highlighting the importance of studying the determinants of political and economic instability. In this context, the study aims to verify the hypothesis that the political instability and the decline of some institutional factor adversely affect economic growth and development (through estimating the potential effect by applying economic models on a large date set, after monitoring for the chronological order of political and economic events in Egypt during the three years following the revolution). The analysis in this study concluded that the cabinet reshuffle and the two composite indicators of political have a significant negative impact on economic growth and therefore on economic development. Changing the prime minister and/or occupying 50% of cabinet posts by new ministers within a year leads to a decline in the growth rate of GDP per capita by almost 1.39 percentage points. The study ends by suggesting the most importing mechanisms to support the political and economic stability that are strengthening the public trust in the government. Paying attention to the social dimensions if the economic decisions, adopting the concept of inclusive growth and promoting corporate governance due to its positive impact on economic development. Keywords: Egypt, Political stability, economic development.