ABSTRACT
Many studies have examined the relation between political stability and economic
performance. Despite the long-lasting academic debate on this issue,
there is no consensus on this relation. Political instability which is defined as
the deviations from normal pattern or a change or challenge to the current
political governance and economic growth are mainly interrelated. Many
empirical studies show that weak economic performance is likely to deteriorate
the political decision making process and may lead to emergence of
macroeconomic imbalances. The aim of this paper is to examine the causal
association between economic development and political stability by employing
panel data analysis for members of Turkic council (Azerbaijan, Kazakhstan,
Kyrgyzstan and Turkey) for the period 2005-2014. Since there are
not many econometric studies to analyze the relation between political stability
and economic performance of Turkic nations, this study contributes to
the limited literature.
KEYWORDS: Turkic council, political stability, economic development, panel data analysis, governance
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