POLITICAL STABILITY AND ECONOMIC DEVELOPMENT IN TURKIC COUNCIL: A DYNAMIC PANEL DATA ANALYSIS

Year 2019, Volume: 1 Issue: 1, 26 - 33, 15.01.2019

İlhan Ege

Abstract

Many studies have examined the relation between political stability and economic performance. Despite the long-lasting academic debate on this issue,there is no consensus on this relation. Political instability which is defined as the deviations from normal pattern or a change or challenge to the current political governance and economic growth are mainly interrelated. Many empirical studies show that weak economic performance is likely to deteriorate the political decision making process and may lead to emergence of macroeconomic imbalances. The aim of this paper is to examine the causalassociation between economic development and political stability by employing panel data analysis for members of Turkic council (Azerbaijan, Kazakhstan, Kyrgyzstan and Turkey) for the period 2005-2014. Since there are not many econometric studies to analyze the relation between political stability and economic performance of Turkic nations, this study contributes to the limited literature.

Keywords

Turkic council, political stability, economic development, panel data analysis, governance

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