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Do Political Stability and Democracy Increase National Growth? Evidence from African Countries Using the GMM Method

Abstract

Nahed Zghidi

The objective of this paper is to examine the relationship between political stability, democracy, and economic growth for 31 African countries covering the 1986/2014 period. To achieve this goal, first, the impact of political stability on economic growth was first investigated. Second, the transmission channels between democracy and economic growth were described. Finally, through a panel estimation using the GMM method, the positive and statistically significant impact of democracy and political stability on these countries economic growth was confirmed.

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