An Investigation of the Effects of Political Stability on Economic Growth in Iran: A Quantile Resression Approach

Document Type : Research Paper

Authors

1 Professor at Department of Economics, University of Tabriz, Tabriz

2 Professor at Department of Economics, University of Tabriz, Tabriz, Iran

3 Ph.D. Candidate of Economics, Department of Economics, University of Tabriz, Tabriz, Iran

Abstract

Political situation is fundamentally about social change in values, behaviors, patterns of economic activity and, crucially, in political institutions.  The purpose of this study is to investigate how political stability affect economic growth in Iran over the period of 1984-2014 using Quantile Regression. In order to determine political instability indicator, we employ the principle component analysis (PCA) on a set of 5 political instability indicators, referred to as: Internal Conflict (IC), External Conflict (EC), Military in Politics (MP), Ethnic Tensions (ET) and Religion in Politics (RP). These data are extracted in ICRG database. The results of our analysis indicate a positive relationship between economic growth and political stability.

Keywords

Main Subjects

References

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Strategic Studies of public policy
Volume 9, Issue 31
August 2019
Pages 39-58

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