A Spatial Exploration of Political Stability, Investment, and Economic Prosperity in Africa

Mohamed Karim, Mohamed Simoh, Hamza El Baraka, Mohammed El Yazidi and Ismail Mouhil
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Mohamed Karim: Macro Economics and Public Policy Research Team, Faculty of Law, Economics and Social Sciences Salé, Mohammed V University, Rabat, Morocco
Mohamed Simoh: Abdelmalek Essaâdi University, Morocco
Hamza El Baraka: Macro Economics and Public Policy Research Team, Faculty of Law, Economics and Social Sciences Salé, Mohammed V University, Rabat, Morocco
Mohammed El Yazidi: Macro Economics and Public Policy Research Team, Faculty of Law, Economics and Social Sciences Salé, Mohammed V University, Rabat, Morocco
Ismail Mouhil: Macro Economics and Public Policy Research Team, Faculty of Law, Economics and Social Sciences Salé, Mohammed V University, Rabat, Morocco

International Journal of Economics and Financial Issues, 2024, vol. 14, issue 4, 34-43

Abstract: The intricate dynamics between political stability and economic growth have emerged as a central focus of scholarly inquiry and policy consideration. This study delves into the nuanced relationship between political stability, investment, and economic prosperity within the unique context of African nations. Theoretical perspectives on this relationship range from negative to positive, reflecting the complexity of the interplay between political environments and economic trajectories. Drawing on a panel of 48 African countries spanning the years 2000-2020, this study employs a sophisticated generalized method of moments-type estimator for linear dynamic panel data models. Unlike many previous studies, we explicitly address the significance of institutional structures and their role in shaping economic growth dynamics. Our findings reveal that political stability is a key determinant with a structurally significant impact on economic growth. Moreover, the study highlights the catalyzing effect of investment, demonstrating a significantly positive influence on economic growth in politically stable environments.

Keywords: Political Stability; Economic Growth; Investment; Africa; Spatial Analysis; Generalized Method of Moments Estimator (search for similar items in EconPapers)
JEL-codes: C33 E22 H11 O10 O55 P16 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2024-04-4

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