IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v3y2014i1p143-169.html
   My bibliography  Save this article

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

Author

Listed:
  • Evangelos Vasileiou

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

Abstract

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.

Suggested Citation

  • Evangelos Vasileiou, 2014. "Political Stability and Fianancial Crisis: What the data say for the European Union’s countries," International Journal of Research in Business and Social Science, Society for the Study of Business & Finance, vol. 3(1), pages 143-169, January.
  • Handle: RePEc:rbs:ijbrss:v:3:y:2014:i:1:p:143-169
    as

    Download full text from publisher

    File URL: http://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/270/181/270-771-1-PB.pdf
    Download Restriction: no

    File URL: http://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/270/181
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ha, Sejin & Stoel, Leslie, 2009. "Consumer e-shopping acceptance: Antecedents in a technology acceptance model," Journal of Business Research, Elsevier, vol. 62(5), pages 565-571, May.
    2. Forsythe, Sandra M. & Shi, Bo, 2003. "Consumer patronage and risk perceptions in Internet shopping," Journal of Business Research, Elsevier, vol. 56(11), pages 867-875, November.
    3. Viswanath Venkatesh & Fred D. Davis, 2000. "A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field Studies," Management Science, INFORMS, vol. 46(2), pages 186-204, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Militiades N. Georgiou & Nicholas Kyriazis & Emmanouil M. L. Economou, 2015. "Democracy, Political Stability and Economic performance. A Panel Data Analysis," Journal of Risk & Control, Risk Market Journals, vol. 2(1), pages 1-18.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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). General contact details of provider: http://edirc.repec.org/data/ssbffea.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.