Political Stability and Economic Growth. A Two Way Relation
It is usually asserted that political instability significantly lowers private investment, as well as economic growth, since it has adverse influence on property rights, and by that on investment and growth (i.e, Robert Barro, 1991; Ross Levine & David Renelt, 1992; Paolo Mauro, 1994; Edgardo Zablotsky, 1994).