Political Instability, Internal Tension, Political Competition and Economic Growth : A Panel-ARDL Approach

The present article analyses the impact of government instability, internal tensions, and political competition on economic growth in selected countries using the Panel-ARDL model from 1995 to 2020. Political instability, one of the chief obstacles to the performance of public functions, threatens the economic system and reduces economic growth by increasing political uncertainty and the risk of investment and government change. According to the article’s results for selected countries (new economies), internal tensions, government stability, and fixed capital formation positively and significantly affect economic growth. Investment in production functions as one of the two factors of production and labor and has a positive relationship with production. The effect of trade liberalization on economic growth is beneficial and significant. Regarding The adverse impact of government size on production, this variable has a negative and significant effect on economic growth. Also, the political competition index affirmatively and significantly impacts economic growth