Empirical Linkage Between Economic Growth and Political Instability and the Effects of Inequalities in Africa

<p>The examination of the relationship between political instability and economic growth is critical in today's global economy, especially in African nations facing multifaceted challenges. Over recent decades, this connection has been a key area of focus for economic scholars, driving significant empirical research. Previous studies, which examined the dynamics of this relationship consistently underscore the profound interconnectedness of economic growth and political stability in the sense that, political instability hampers economic growth, while economic downturns can trigger political unrest and government collapse.</p> <p>Our study empirically investigates the linkage between economic growth, political instability, and inequality in Africa, analyzing data from all 54 African countries over a 60-year period (1961–2020). GDP per capita growth is used as a proxy for economic growth, while major cabinet changes serve as a key indicator of political instability due to their availability and long-term data consistency. The study also explores the role of economic and social inequalities in influencing both economic growth and political stability. Including the North African sub-region enriches the analysis by offering a broader perspective on the unique geopolitical and socio-economic dynamics influencing economic growth and political stability.</p> <p>Using panel data, five distinct estimation methods were employed to analyze these relationships. The results generally confirm that political instability has a statistically significant negative effect on economic growth. However, the reverse relationship on how economic growth affects political instability produced mixed results, with growth reducing instability in some cases and exacerbating it in others. Similarly, the impact of inequality on both growth and political stability varied across models by producing mixed outcomes.</p> <p>To bridge the gap between theory and practice, we have incorporated findings from field research visits conducted in six selected African countries. These visits offered valuable insights that enriched our study by providing practical, on-the-ground perspectives. The field findings largely validate the theoretical framework, reinforcing the importance of macroeconomic factors in shaping economic growth and political stability. Key challenges identified include inflation, underdeveloped financial markets, exchange rate management issues, weak risk management infrastructure, and low financial literacy, each posing significant hurdles to Africa’s economic development.</p>

Name thesis:degree_name

Political Science and Economics, PhD interfield

Level thesis:degree_level

Open Access Dissertation

Discipline thesis:degree_discipline

School of Social Science, Politics, and Evaluation

Year dc:date.available

2024

Author dc:creator

• Assenga, Francis Joseph

Contributors dc:contributor

• Graham Bird
• Melissa Rogers

• Africa
• economic growth
• inequality
• macroeconomics
• political instability
• political institutions
• Economics
• Economic Theory
• Political Science

Repository record dc:identifier

https://scholarship.claremont.edu/cgu_etd/899

OAI identifier oai:identifier

oai:scholarship.claremont.edu:cgu_etd-1921