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On the measurement of political instability and its impact on economic growth

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Author Info
Jong-A-Pin, R. (Groningen University)

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Abstract

We examine the relationship between political instability and economic growth. Using an exploratory factor analysis we identify four dimensions of political instability: (1) mass civil protest, (2) politically motivated aggression, (3) instability within the political regime and (4) instability of the political regime. We show that individual political instability indicators are generally poor proxies for the underlying dimensions of political instability. Our panel estimates for a sample of 98 countries in the period 1984-2003 indicate that the various dimensions of political instability have different effects on economic growth.

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Paper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 06C05.

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Date of creation: 2006
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Handle: RePEc:dgr:rugsom:06c05

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  1. Berggren, Niclas & Bergh, Andreas & Bjørnskov, Christian, 2009. "The growth effects of institutional instability," Working Papers 2009:8, Lund University, Department of Economics. [Downloadable!]
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  2. Jakob Haan, 2007. "Political institutions and economic growth reconsidered," Public Choice, Springer, vol. 131(3), pages 281-292, June. [Downloadable!] (restricted)
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