Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 348

Full Length Research Paper

Interaction between political instability and investment

Hadhek Zouhaier1,2* and Mohamed Karim KEFI3
  1Superior Institut of Gestion (ISG) of Gabès, Tunisia. 2ISG Gabès rue Jilani Habib 6002 Gabès, Tunisia. 3CERI/ ISTEC PARIS, France.
Email: [email protected]

  •  Accepted: 12 January 2012
  •  Published: 22 January 2012

Abstract

 

The aim of this paper is to identify the effect of political instability on investment and economic growth. By using a dynamic balanced panel data model applied on annual data from 11 countries from the Middle East and North Africa (MENA) region over the period of 2000 to 2009. The political instability’ effect on the contribution of investment to economic growth has been the subject of a second empirical study within the framework of this research paper. The main outcomes drawn by these two empirical tests prove that there is no effect of political instability on investment and economic growth and a negative interaction between political instability and investment.

 

Key words: Political instability, investment, economic growth, dynamic panel.

Abbreviation

 

JEL: O43, O47, C23.