Political Instability and Economic Growth: Evidence from Jordan

Osama Sweidan ()

Review of Middle East Economics and Finance, 2016, vol. 12, issue 3, 279-300

Abstract: This paper explores the link between political instability and economic growth in Jordan, which is a lower middle-income country located at the heart of the Middle East. Historically, this region has been living under protracted wars, clashes, violence and terrorist attacks. We can expect these events to influence economic growth via their effect on government spending. We employ two econometric techniques: ARDL model (OLS) and Kalman filter (ML) and use data over the period 1967–2009. We find political instability has a statistically significant negative effect on economic growth as well as on real government expenditures.

Keywords: political instability; growth rate of real income per capita; real government spending; Jordan; ordinary least squares; Kalman filter (search for similar items in EconPapers)
JEL-codes: C13 O40 O43 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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DOI: 10.1515/rmeef-2015-0025

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