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Does Economic Growth Lead to Political Stability?

In: The Political Dimension of Economic Growth

Author

Listed:
  • Martin Paldam

    (University of Aarhus)

Abstract

There are two contradictory answers to the question in the title. The first is the good growth hypothesis: economic growth generates higher incomes, which should make people approve of the government. Hence growth generates stability. The second is the destabilizing growth hypothesis: growth generates complex changes in society, and therefore instability. A part of the instability will be political, so that where the political system is not well established, growth could lead to political instability.

Suggested Citation

  • Martin Paldam, 1998. "Does Economic Growth Lead to Political Stability?," International Economic Association Series, in: Silvio Borner & Martin Paldam (ed.), The Political Dimension of Economic Growth, chapter 9, pages 171-190, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-26284-7_9
    DOI: 10.1007/978-1-349-26284-7_9
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    Citations

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    Cited by:

    1. de Haan, Jakob & Sturm, Jan-Egbert, 2000. "On the relationship between economic freedom and economic growth," European Journal of Political Economy, Elsevier, vol. 16(2), pages 215-241, June.
    2. repec:dgr:rugccs:199903 is not listed on IDEAS
    3. Dirks, Maximilian & Schmidt, Torsten, 2023. "The relationship between political instability and economic growth in advanced economies: Empirical evidence from a panel VAR and a dynamic panel FE-IV analysis," Ruhr Economic Papers 1000, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. Vincenzo Alfano & Salvatore Capasso & Valerio Filoso, 2020. "The Quality of Governance in Europe: A Guide for the Perplexed," CSEF Working Papers 592, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    5. Farzanegan, Mohammad Reza & Witthuhn, Stefan, 2017. "Corruption and political stability: Does the youth bulge matter?," European Journal of Political Economy, Elsevier, vol. 49(C), pages 47-70.
    6. Abdul Rehman Nawaz & Usama Anwar & Fizza Aquil, 2021. "An Economic Impact of Political Instability: An Evidence from Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 3(1), pages 47-54.
    7. Zallé, Oumarou, 2023. "Natural resource rents and regime durability: Identifying cross-country durability regimes," Resources Policy, Elsevier, vol. 81(C).
    8. Arjun Kumar Dahal & Prem Bahadur Budhathoki & Ganesh Bhattarai, 2024. "Nexus between Unemployment, Income Inequality, Political Stability, and Economic Growth: An Empirical Study of the Nepalese Economy," Valahian Journal of Economic Studies, Sciendo, vol. 15(1), pages 1-14.

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