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A Spatial Exploration of Political Stability, Investment, and Economic Prosperity in Africa

Author

Listed:
  • Mohamed Karim

    (Macro Economics and Public Policy Research Team, Faculty of Law, Economics and Social Sciences Salé, Mohammed V University, Rabat, Morocco)

  • Mohamed Simoh

    (Abdelmalek Essaâdi University, Morocco)

  • Hamza El Baraka

    (Macro Economics and Public Policy Research Team, Faculty of Law, Economics and Social Sciences Salé, Mohammed V University, Rabat, Morocco)

  • Mohammed El Yazidi

    (Macro Economics and Public Policy Research Team, Faculty of Law, Economics and Social Sciences Salé, Mohammed V University, Rabat, Morocco)

  • Ismail Mouhil

    (Macro Economics and Public Policy Research Team, Faculty of Law, Economics and Social Sciences Salé, Mohammed V University, Rabat, Morocco)

Abstract

The intricate dynamics between political stability and economic growth have emerged as a central focus of scholarly inquiry and policy consideration. This study delves into the nuanced relationship between political stability, investment, and economic prosperity within the unique context of African nations. Theoretical perspectives on this relationship range from negative to positive, reflecting the complexity of the interplay between political environments and economic trajectories. Drawing on a panel of 48 African countries spanning the years 2000-2020, this study employs a sophisticated generalized method of moments-type estimator for linear dynamic panel data models. Unlike many previous studies, we explicitly address the significance of institutional structures and their role in shaping economic growth dynamics. Our findings reveal that political stability is a key determinant with a structurally significant impact on economic growth. Moreover, the study highlights the catalyzing effect of investment, demonstrating a significantly positive influence on economic growth in politically stable environments.

Suggested Citation

  • Mohamed Karim & Mohamed Simoh & Hamza El Baraka & Mohammed El Yazidi & Ismail Mouhil, 2024. "A Spatial Exploration of Political Stability, Investment, and Economic Prosperity in Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 14(4), pages 34-43, July.
    • Handle: RePEc:eco:journ1:2024-04-4
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Political Stability; Economic Growth; Investment; Africa; Spatial Analysis; Generalized Method of Moments Estimator;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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