Question

Essay Importance of political stability for the growth of the country

Answer 1

Answer:

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Explanation:

The relationship between political stability, freedom and economic performance has raised many debates in economic literature in the past decades. There is a commonly perception that the reliable political environment is a necessity condition for economic development, many researchers tried to examine such a perception empirically both in a global and regional context, they suggest that political instability, by creating uncertainties in political and economic environments, distorts economic decisions, including investment, production, and labor supply, and thereby reduces long-run growth. However, much of the empirical literature has failed to find a significant, negative relationship between political stability and growth. In the other hand, democracy is valued independently of its effects on material well-being. Equal participation in elections (voice) and in the evaluation of government officials (accountability) is universally perceived as a precondition for social justice. Studying the effects of democracy on economic growth, because it focuses on its material consequences, is often deemed a futile endeavor.