Does the government instability have an impact on the economic growth?

Quid de l'instabilité gouvernementale sur la croissance économique ?

Akhenaton Izu () and Verlin Motanda ()

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Abstract: The carrying out of this paper came from the main problem which consists to demonstrate that the government instability, in duration and size, is a gravity for the economic growth and DRC development. Theoretically, the government instability goes through " the delay effect and the breaking effect " in order to affect the economic growth. Concerning the methodology, this paper has used an econometric approach and precisely instrumental variables method. It results from this analysis that to each cabinet reshuffle, DRC sees its economic growth decreased of 0.98%, the added value in percentage of GDP decreases of 0.19%, while public revenues are sharply up to a limit of 350 million dollars. Nevertheless, a positive relationship was detected between the average duration of a government, net foreign direct investment in percentage of GDP and the industry added value.

Keywords: Government instability; Investment; Instrumental variables; Risk.; Instabilité Gouvernementale; Investissement; Risque; Variables instrumentales (search for similar items in EconPapers)
Date: 2015-11-10
Note: View the original document on HAL open archive server: https://hal.science/hal-01791826
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Published in 2015

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