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Abstract
This paper examines the effects of political instability on macroeconomic and human capital variables using a database covering over 180 countries from 1960-2022. The findings show that political instability significantly negatively affects economic growth, total factor productivity, foreign direct investment, and trade openness, while increasing government spending, inflation rate, and unemployment rate. Political instability also negatively affects inequality, poverty, vulnerability, and migration outcomes.
Keywords
Political Economy, Macroeconomics, Political Instability, Economic Growth, Development