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The concept of political instability in economic research

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  • Jannils Łukasz

    (CASE - Center for Social and Economic Research, Warsaw, Poland.)

Abstract

This article reviews the use of the concept of political instability in economic research, the importance of which has been growing in recent years due to its potentially profound economic consequences. The article explores this concept by working through the definitions, dimensions, and methods of quantification. It also summarizes the results of the theoretical and empirical research on the economic implications of political instability. In contrast with the previous literature reviews, this article is not limited to the relationship between of political instability and one specific macroeconomic phenomenon but intends to summarize the findings of the research regarding its impact on a variety of economic phenomena investigated in the literature. The review covers the most influential publications in this area characterized by formulation of original research hypotheses, use of novel datasets, and development of innovative research methods. The research reviewed shows that political instability has a detrimental effect on economic growth, investment, inflation, fiscal deficits, public debt, and the functioning of financial markets.

Suggested Citation

  • Jannils Łukasz, 2021. "The concept of political instability in economic research," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 57(3), pages 268-284, September.
    • Handle: RePEc:vrs:ijomae:v:57:y:2021:i:3:p:268-284:n:4
    DOI: 10.2478/ijme-2021-0016
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    More about this item

    Keywords

    economic growth; political economy; political instability; political violence;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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