The Dynamic Effect of Social and Political Instability on Output: The Role of Reforms

 
Author/Editor: Bernal-Verdugo, Lorenzo E. ; Furceri, Davide ; Guillaume, Dominique
 
Publication Date: April 23, 2013
 
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Summary: The aim of this paper is to analyze the dynamic effect of social and political instability on output. Using a panel of up to 183 countries from 1980 to 2010, the results of the paper suggest that social conflicts have a significant and negative impact on output in the short-term with the magnitude of the effect being a function of the intensity of political instability. The results also show that the recovery of output over the medium-term depends on the ability of the country to implement, in the aftermath of a social instability episode, reforms aimed at improving the level of governance. The results are robust to different checks and estimation strategies.
 
Series: Working Paper No. 13/91
Subject(s): Political economy | Fiscal reforms | Economic growth | Economic models

 
English
Publication Date: April 23, 2013
ISBN/ISSN: 9781484381687/2227-8885 Format: Paper
Stock No: WPIEA2013091 Pages: 41
Price:
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