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Do Economic and Financial Stabilities Matter for Political Stability in Estonia?

Author

Listed:
  • Dervis Kirikkaleli

    (European University of Lefke)

  • Fusun Celebi Boz

    (Sakarya University of Applied Sciences)

  • Melike Torun

    (Istanbul University Cerrahpasa)

Abstract

This study aims to investigate the causal impact of economic and financial stability on political stability in Estonia. With the purpose of determining robust results for the study in mind, both traditional and modern causality methods are employed. To that end, we utilized the nonparametric Diks and Panchenko causality and frequency-domain Granger causality tests. Our nonparametric causality findings reveal that changes in economic and financial stability in Estonia lead to significant changes in political stability, thus indicating how economic and financial factors are important for political stability in Estonia. These results are consistent with findings from spectral causality at different frequencies.

Suggested Citation

  • Dervis Kirikkaleli & Fusun Celebi Boz & Melike Torun, 2024. "Do Economic and Financial Stabilities Matter for Political Stability in Estonia?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 15202-15217, September.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01662-6
    DOI: 10.1007/s13132-023-01662-6
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    More about this item

    Keywords

    Economic stability; Financial stability; Political stability; Frequency-domain causality; Estonia;
    All these keywords.

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • G00 - Financial Economics - - General - - - General
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

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