Author : Mr.Lorenzo E. Bernal-Verdugo,Davide Furceri,Mr.Dominique M. Guillaume
Publisher : International Monetary Fund
Page : 41 pages
File Size : 42,5 Mb
Release : 2013-04-23
Category : Business & Economics
ISBN : 9781484339268
The Dynamic Effect of Social and Political Instability on Output by Mr.Lorenzo E. Bernal-Verdugo,Davide Furceri,Mr.Dominique M. Guillaume Pdf
The aim of this paper is to analyze the dynamic effect of social and political instability on output. Using a panel of up to 183 countries from 1980 to 2010, the results of the paper suggest that social conflicts have a significant and negative impact on output in the short-term with the magnitude of the effect being a function of the intensity of political instability. The results also show that the recovery of output over the medium-term depends on the ability of the country to implement, in the aftermath of a social instability episode, reforms aimed at improving the level of governance. The results are robust to different checks and estimation strategies.