The Dynamic Effect of Social and Political Instability on Output: The Role of Reforms
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.
Subject: Production, Production growth
Keywords: adverse regime changes, crisis, Eastern Europe, governance data, governance indicator, governance reform, growth, level of governance, political system, Production growth, reforms, social conflicts, WP
Pages:
41
Volume:
2013
DOI:
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Issue:
091
Series:
Working Paper No. 2013/091
Stock No:
WPIEA2013091
ISBN:
9781484381687
ISSN:
1018-5941
