Political Stability and Its Impact on Economic Growth of Asian Countries (1988-2018)

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Majid Hussain Phul, Muhammad Saleem Rahpoto, Syed Akram Ali Shah

Abstract

This Research Analysis The Effect Of Political Stability (PS) On Economic Growth (EG) In Selected Asian Countries From 1988-2018. PS And EG Is Inter Dependent Variables, That Establish The Significance Of PS In The EG Of Asian Countries. To Investigate Whether The Variables Are Stationary Or Not We Have Been Conduct Panel Unit Root Tests. There Are Some Approaches That Analyses Unit Roots Such As   PP - Fisher Chi-Square, Im, Pesaran And Shin ,W-Stat, Levin, Lin & Chu   Breitung T-Stat And ADF - Fisher Chi-Square For The Benefit Of Variables. In This Research Im, Pesaran And Shin,W-Stat (IPS) Panel Unit Root Test Has Been Used For Checking The Stationary Of The Data. The Results Shows That PS And INF Are Become Stationary At Level I(0), While GDP,GFCF And TLF Are Become Stationary At 1st Difference I(1).In The Research Panel ARDL (PMG) Method Has Been Used For Checking Short Run And Long Run Nexus Between Dependent Variable (DV) And Explanatory Variable. PS Has A Significant And Positive Impact On EG Of Selected Asian Countries In The Long Run. In The Short Run There Is An Insignificant Effect (No Effect) Of PS On The EG Of Asian Countries. GFCF Has A Significant And Positive Effect On The EG Of Asian Countries In The Long And Short Run Analysis. TLF Has Also A Significant And Positive Impact On The EG Of In The Long Run Analysis. While In The Short Run There Is Insignificant Effect (No Effect) Of TLF On The EG. In The Long Run INF Has Negative And Significant Effect On The EG. In The Short Run INF Has A Positive And Significant Effect On The EG Of Asian Countries.

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