Political instability and economic growth: Evidence from two decades of transition in CEE

Henryk Gurgul and Łukasz Lach

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the nexus between political instability and economic growth in 10 CEE countries in transition in the period 1990-2009. Our results support the contention that political instability defined as a propensity for government change had a negative impact on growth. On the other hand, there was no causality in the opposite direction. A sensitivity analysis based on the application of a few hundred different variants of the initial econometric model confirmed the abovementioned findings only in the case where major government changes were applied to the definition of political instability.

Keywords: economic growth; political instability; CEE economies (search for similar items in EconPapers)
JEL-codes: O40 (search for similar items in EconPapers)
Date: 2012-03-01
New Economics Papers: this item is included in nep-cwa, nep-fdg, nep-pol and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Political instability and economic growth: Evidence from two decades of transition in CEE (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:37792

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