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An unstable macroeconomic environment is often regarded as detrimental to economic growth. Among the sources contributing to such instability, the literature has assigned most of the blame to political issues. This paper empirically tests for a causal and negative long-term relationship between...
Persistent link: https://www.econbiz.de/10005504467
that, contrary to what they profess, macroeconomic and political risk is not inhibiting the investment behavior of …
Persistent link: https://www.econbiz.de/10011084029
What are the main causes of international terrorism? The lessons from the surge of academic research that followed 9/11 remain elusive. The careful investigation of the relative roles of economic and political conditions did little to change the fact that existing econometric estimates diverge...
Persistent link: https://www.econbiz.de/10005029291
We develop a theory of political transitions inspired in part by the experiences of Western Europe and Latin America. Nondemocratic societies are controlled by a rich elite. The initially disenfranchised poor can contest power by threatening social unrest or revolution, and this may force the...
Persistent link: https://www.econbiz.de/10005661707
What is the relationship between economic growth and its volatility? Does political instability affect growth directly or indirectly, through volatility? This paper tries to answer such questions using a power-ARCH framework with annual time series data for Argentina from 1896 to 2000. We show...
Persistent link: https://www.econbiz.de/10005667076
Although recent research has repeatedly found a negative association between investment and political instability, the … such a causal and negative long-run relationship between political instability and investment. It finds that there is a … robust causal relationship from instability to investment, and that it is positive. In other words, an increase in political …
Persistent link: https://www.econbiz.de/10005791838
savings incentives and ameliorate the wealth constraints that impede investment by the poor. The second model is a growth …
Persistent link: https://www.econbiz.de/10005123982
This paper investigates the effects of financial development and political instability on economic growth in a power-ARCH framework with data for Argentina from 1896 to 2000. Our findings suggest that (i) informal or unanticipated political instability (e.g., guerrilla warfare) has a direct...
Persistent link: https://www.econbiz.de/10005114221
relative to the present is reduced. Hence, due to a rise in terror activity, investment goes down, and in the long run income …
Persistent link: https://www.econbiz.de/10005504271
and investment, so it may take some time before an unemployed worker finds a job. Wages are determined by bargaining. A … subsidize entrepreneurial investment (there is a wage bargaining distortion and a search externality), simulations show that the …
Persistent link: https://www.econbiz.de/10005504418