Political instability, policy uncertainty, and economic growth: An empirical investigation

Ali, Abdiweli M.

doi:10.1007/bf02299934

Cited by 39 publications

(18 citation statements)

References 24 publications

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“…Such policy uncertainty can have various impacts on private sectors. It also harms the macroeconomy [6,7]. EPU can affect cash flow by changing stock risk premium.…”

Section: Introductionmentioning

confidence: 99%

Sector Volatility Spillover and Economic Policy Uncertainty: Evidence from China’s Stock Market

Liu

2021

Mathematics

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Following generalized variance decomposition, we identify the transmission structure of financial shock among ten sectors in China. Then, we examine whether economic policy uncertainty (EPU) affects it through GARCH-MIDAS regression. We find that consumer discretionary, industrials, and materials sectors are systemically important industries during the sample period. Further research of dynamic analysis shows that each sector acts in a time-varying role in this structure. The results of the GARCH-MIDAS regression indicate that none of the selected EPU indexes has a significant long-term impact on the total volatility spillover of the inter-sector stock market in China. However, the EPUs do affect some sectors’ spillover indexes in the long run, and they are significantly heterogeneous. This paper can provide regulatory suggestions for policymakers and reasonable asset allocation and risk avoidance methods for investors.

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“…Such policy uncertainty can have various impacts on private sectors. It also harms the macroeconomy [6,7]. EPU can affect cash flow by changing stock risk premium.…”

Section: Introductionmentioning

confidence: 99%

Sector Volatility Spillover and Economic Policy Uncertainty: Evidence from China’s Stock Market

Liu

2021

Mathematics

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“…For this purpose, the constructed political index model is based on various social unrest events like the number of political motivated assassinations, the number of people killed in conjunction with of domestic mass violence, the number of successful coups, the number of attempted but unsuccessful coups, democracy, semi democracies and dictatorships (Ali, 2001). In addition, another study by Asteriou and Price (2001) constructed the political instability index based on TERROR, the number of terrorist incidents, STRIK, the number of strikes ELECT, an election dummy, REGIME, a dummy variable for War, 1982, GULF, a dummy variable for the period of Gulf War.…”

Section: Socio-political Factorsmentioning

confidence: 99%

Corporate Governance and Downside Systematic Risk with a Moderating Role of Socio-Political in Pakistan

Hussain¹,

Shah²

2017

BER

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“…Most studies emphasize that an unstable political regime generates lower rates of economic growth compared with more stable ones. Thus, policy uncertainty should be prevented because it is significantly negatively corelated with economic development (Ali 2001). Various aspects of political stability have been analyzed in connection with corruption and fraud (Nur-tegin and Czap 2012;Schumacher 2013;Turedi and Altiner 2016;Farzanegan and Witthuhn 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

Economic and Non-Economic Variables Affecting Fraud in European Countries

Ahmad

Ciupac-Ulici

Beju

2021

Risks

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Fraud is one of the most harmful phenomena, because it leads to collapse of organizations, causes economic downfall of countries, and destroys faith in a country’s capital markets. The impact of fraud is complex and has varying degrees depending on political and financial institutional structures of a country. In this paper, we investigate the combined effect of economic and non-economic variables on fraud using a sample of 41 developed, in transition, and developing European countries. The data cover the period July 2014–December 2020. Panel data techniques of pooled estimation and the dynamic panel data/generalized method of moments (DPD/GMM) is used, keeping in view the endogeneity perspective. Nevertheless, two-way impacts of fixed effect model estimation—cross-sectional and time-based (panel) effects (alternatively)—are used for analyzing the relationship among the given variables, based on Hausman specification test results. Empirical results of panel data extended REM and FEM approaches with country-specific cross-sectional effects showing that political stability, economic freedom, poverty, and GDP significantly affect fraud proliferation. Political stability is appraised to be the most scoring determinant of fraud incidence in a country.

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Political instability, policy uncertainty, and economic growth: An empirical investigation

Abstract: (JEL 017, 040, P51)

Cited by 39 publications

References 24 publications

Sector Volatility Spillover and Economic Policy Uncertainty: Evidence from China’s Stock Market

Sector Volatility Spillover and Economic Policy Uncertainty: Evidence from China’s Stock Market

Corporate Governance and Downside Systematic Risk with a Moderating Role of Socio-Political in Pakistan

Economic and Non-Economic Variables Affecting Fraud in European Countries

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