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Does Political Stability Accelerate Economic Growth in Tanzania? A Time Series Analysis

Author

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  • Abeid Ahmed Ramadhan
  • Zhi Hong Jian
  • Kyissima Kelvin Henry
  • Yapatake Kossele Thales Pacific

Abstract

Political stability normally plays an essential role in the process of economic development of any country. The vector error correction model (VECM) is employed to examine the impact of political stability on economic growth in Tanzania covering the period of 1996–2014. The cointegration test has been ascertained through the application of augmented Dickey–Fuller (ADF) and Phillips–Perron (PP) tests showing that there is a long-run relationship. The results show that only political stability is statistically significant and has a positive relationship with economic growth, while gross domestic investments (GDI) and total labour forces are not statistically significant but have a positive relationship with economic growth.

Suggested Citation

  • Abeid Ahmed Ramadhan & Zhi Hong Jian & Kyissima Kelvin Henry & Yapatake Kossele Thales Pacific, 2016. "Does Political Stability Accelerate Economic Growth in Tanzania? A Time Series Analysis," Global Business Review, International Management Institute, vol. 17(5), pages 1026-1036, October.
    • Handle: RePEc:sae:globus:v:17:y:2016:i:5:p:1026-1036
    DOI: 10.1177/0972150916656652
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    References listed on IDEAS

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    3. Aisen, Ari & Veiga, Francisco José, 2013. "How does political instability affect economic growth?," European Journal of Political Economy, Elsevier, vol. 29(C), pages 151-167.
    4. Augustin Kwasi Fosu, 2004. "Mapping Growth into Economic Development," American Journal of Economics and Sociology, Wiley Blackwell, vol. 63(5), pages 1173-1192, November.
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