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Political Instability and Economic Growth: UK Time Series Evidence

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  • Dimitrios Asteriou
  • Simon Price

Abstract

This paper tests for the influence of political instability on UK economic growth between 1961 and 1997. We construct six variables that quantify political instability and examine the effect on growth. The results suggest that there is a strong link. GARCH‐M models reveal negative effects of instability on growth and positive effects on growth uncertainty. Uncertainty in itself does not affect growth.

Suggested Citation

  • Dimitrios Asteriou & Simon Price, 2001. "Political Instability and Economic Growth: UK Time Series Evidence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(4), pages 383-399, September.
  • Handle: RePEc:bla:scotjp:v:48:y:2001:i:4:p:383-399
    DOI: 10.1111/1467-9485.00205
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