Advanced Search
MyIDEAS: Login to save this article or follow this journal

Political Stability and Fianancial Crisis: What the data say for the European Union’s countries


Author Info

  • Evangelos Vasileiou

    (Department of Business Administration, University of the Aegean, Chios, Greece)

Registered author(s):


    This paper tries to examine in detail political stability in the European Union’s (EU) countries during the period 2002-12. Firstly, it examines the causality relationship between political stability and economic growth, which is an issue that has puzzled scholars for decades. Using the Granger causality test the empirical findings suggest that in the case of the EU’s countries, causality is one directional, moving from political stability to economic growth. Secondly, it examines the factors that affect political stability. Using the fixed effects panel data model, we may suggest that the long term recession, the increased unemployment ratios and the high levels of inflation significantly threaten political stability. However, there are other factors that are not exclusively due to economics, such as transparency, public health care, education etc., which may significantly reduce the previously mentioned consequences. Finally, this study suggests some reforms of the EU’s regulation according to the migration policy that may smooth social and humanitarian disparities.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    Bibliographic Info

    Article provided by Society for the Study of Business & Finance in its journal International Journal of Research in Business and Social Science.

    Volume (Year): 3 (2014)
    Issue (Month): 1 (January)
    Pages: 143-169

    as in new window
    Handle: RePEc:rbs:ijbrss:v:3:y:2014:i:1:p:143-169

    Contact details of provider:
    Postal: Beylikduzu Yerleskesi Beykent, Buyukcekmece-Istanbul, Turkey
    Phone: +90 – 444-1-997 / (5307 or 5482)
    Fax: +90 0212 867 55 66
    Web page:
    More information through EDIRC

    Related research

    Keywords: Political Stability; Financial Crisis; European Union; Inequalities; Immigration Policy; Economic Growth; Health And Education;


    No references listed on IDEAS
    You can help add them by filling out this form.



    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:3:y:2014:i:1:p:143-169. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Senol Emir).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.