War and peace: why is political stability pivotal for economic growth of OIC countries Report as inadecuate




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Abstract

Since the end of World War II, Muslim countries have been plagued by sixteen major wars, many coups,political, religious and ethnic insurgency, and revolutions. While many developing countries in southeastAsia have emerged as developed economy in this time period, in spite of having sufficient naturalresources, most of the Muslim countries are still fighting with higher inflation, unemployment, poverty,inequality, poor healthcare, illiteracy, and rampant corruption. This paper studies how political stabilityaffects growth in OIC countries by using relatively advanced dynamic GMM and simultaneous quantileregression. It is found that political stability has significant positive effect on growth. The impact ofpolitical stability on economic growth is more important for lower income countries than higher incomecountries. Most of the low to mid income oil dependent OIC countries suffer from chronic misery,higher inflation and persistent unemployment, which has significant negative effect on growth. Oilrevenue plays a major role in economic growth for both OIC and Non-OIC oil dependent developingcountries. The importance of political stability, economic diversification and macroeconomic stabilityhas been restated with policy recommendations for oil dependent developing countries in general andOIC countries in particular.



Item Type: MPRA Paper -

Original Title: War and peace: why is political stability pivotal for economic growth of OIC countries?-

English Title: War and peace: why is political stability pivotal for economic growth of OIC countries?-

Language: English-

Keywords: political stability, economic growth, misery index, oil rent, OIC countries, dynamic GMM,Quantile regression1Md-

Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C58 - Financial EconometricsO - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development-





Author: Uddin, Md Akther

Source: https://mpra.ub.uni-muenchen.de/71678/







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