{
  "title": "How Does Political Instability Affect Economic Growth?",
  "publication": "IMF Working Papers, January 1, 2011",
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  "summary": "The purpose of this paper is to empirically determine the effects of political instability on economic growth. Using the system-GMM estimator for linear dynamic panel data models on a sample covering up to 169 countries, and 5-year periods from 1960 to 2004, we find that higher degrees of political",
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    {
      "heading": "Purpose and methodology",
      "content": "- Purpose: To empirically determine the effects of political instability on economic growth.\n- Estimator: system-GMM estimator for linear dynamic panel data models.\n- Sample coverage: up to 169 countries.\n- Time coverage: 5-year periods from 1960 to 2004."
    },
    {
      "heading": "Main empirical findings",
      "content": "- Higher degrees of political instability are associated with lower growth rates of GDP per capita.\n- Political instability adversely affects growth primarily by lowering the rates of productivity growth.\n- Political instability also lowers growth to a smaller degree via reductions in physical and human capital accumulation.\n- Economic freedom is beneficial to growth.\n- Ethnic homogeneity is beneficial to growth.\n- Democracy may have a small negative effect on growth."
    },
    {
      "heading": "Channels of transmission (as identified)",
      "content": "- Productivity growth: primary channel through which political instability reduces GDP per capita growth.\n- Physical capital accumulation: secondary, smaller negative effect.\n- Human capital accumulation: secondary, smaller negative effect.\n\n---\n\n Content in this bundle\n\n- wp1112\n  - wp1112 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1112 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/how-does-political-instability-affect-economic-growth-24570"
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    "Authors: Ari Aisen, Francisco José Veiga",
    "Published: January 1, 2011",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781455211906.001",
    "Purpose: To empirically determine the effects of political instability on economic growth.",
    "Estimator: system-GMM estimator for linear dynamic panel data models.",
    "Sample coverage: up to 169 countries.",
    "Time coverage: 5-year periods from 1960 to 2004.",
    "Higher degrees of political instability are associated with lower growth rates of GDP per capita.",
    "Political instability adversely affects growth primarily by lowering the rates of productivity growth.",
    "Political instability also lowers growth to a smaller degree via reductions in physical and human capital accumulation.",
    "Economic freedom is beneficial to growth.",
    "Ethnic homogeneity is beneficial to growth.",
    "Democracy may have a small negative effect on growth.",
    "Productivity growth: primary channel through which political instability reduces GDP per capita growth.",
    "Physical capital accumulation: secondary, smaller negative effect.",
    "Human capital accumulation: secondary, smaller negative effect.",
    "**_wp1112**"
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