Political Stability and Financial Development: Evidence from Turkey

Yıl 2019, , 72 - 79, 30.09.2019

Zehra Doğan-çalışkan

https://doi.org/10.25295/fsecon.2019.03.005

Cited By: 2

Öz

The interaction between political decisions and economic indicators constitutes the main subject of political economy and it surfaces the performance that policymakers display in the point of the solution of economic problems. In other words, the most significant results of political decisions have been seen in the field of economy. In this regard, the stability of political decisions and the existence of political stability which is defined as political order affect economic order, development and stability as well. The economic stability that affects the welfare level of one country have several determinants like the macroeconomic indicators such as general level of prices, rate of employment, level of production and balance of payments, and the continuity of political order, the size of military power, corruption, accountability in politics, political transparency and fair distribution of income. In this study, on the other hand, how political stability affects financial development in the field of economy has been researched. For that purpose, Granger causality test has been applied for Turkey by using the data of financial development and political stability belonging to the years of 1970-2017. In the result of analysis, a long-termed relationship between financial development and political stability was discovered and a causality from financial development to political stability was discovered as well.

Anahtar Kelimeler

Political Stability, Political Instability, Financial Development, Turkey

Kaynakça

• Aisen, A. ve Veiga, F.J. (2010), How Does Polıtıcal Instabılıty Affect Economıc Growth? Central Bank of Chile Working Papers No: 568, 1 - 40, Available: https://www.imf.org/external/pubs/ft/wp/2011/wp1112.pdf.
• Ake, C. (1975), A Definition of Political Stability, Comparative Politics, Vol. 7, No. 2, pp. 271-283, Available:http://www.jstor.org/stable/421552.
• Alesina A. ve Perotti R. (1993), Income Distrubition, Politicial Instability, and Investment, Europan Economic Review, 40 (6), 1203-1228. doi:10.1016/0012921(95)00030-5.
• Alesina, A. ve Özler S. ve Roubini, N. ve Swagel, P. (1996), Political Instability and Economic Growth, NBER Working Paper Series, No. 4173 Available: http://www.nber.org/papers/w4173.
• Arslan, Ü. (2011), Siyasi İstikrarsızlık ve Ekonomik Performans: Türkiye Örneği, Ege Akademik Bakış Dergisi, Cilt:11, Sayı:1, ss.73-80. Available: http://www.acarindex.com/dosyalar/makale/acarindex.pdf.
• Asteriou, D. ve Price, S. (2001), Political Instability and Economic Growth: UK Time Series Evidence, Scottish Journal of Polititcal Economy, Vol.48, No.4, Available:http://econpapers.repec.org/article/blascotjp.
• Berthelemy, J.C. ve Kauffmann, C. ve Renard, L. ve Wegner, L. (2002), Political Instability, Political Regimes And Economic Performance in African Countries, The OECD Development Center, Working Paper, Available:http://citeseerx.ist.psu.edu/viewdoc/downlodoi=10.1.1.458.7484.pdf.
• Compos, N.F ve Karanasos, M.G. ve Tan, B. (2012), Two to tangle: Financial development, political instability and economic growth in Argentina, Journal of Banking & Finance 36 (1), 290–304.
• Diken, A. ve Parlakkaya, A. ve Kara, E. ve Kodalak, O. (2018), The Relation Between Political Stability and Economic Growth: TheTurkish Case Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 40 (1), 176-185.
• Doğan Çalışkan, Z. (2018), An Evaluatıon Upon The Relatıonshıp Of Polıtıcal Stabılıty And Economıc Growth, in Economic and Managemen Issues in Retrospect and Prospect, Edited by: Eszter Wirth, Orhan Şimşek, Şükrü Apaydın, First Edition, November 2018 IJOPEC Publication No: 2018/37, ISBN: 978-1-912503-58-2 123-128.Feng, Y. (1997), Democracy, Political Stability and Economic Growth. British Journal of Political Science, 27(3), 391-418. doi:10.1017/S0007123497000197
• Fosu, A. K. (1992), Political Instability and Economic Growth, American Journal of Economics and Sociology, 61(1), Available: http://onlinelibrary.wiley.com/doi/10.1111/1536-7150.00162/pdf.
• Gurgul, H. ve Lach, L. (2013). Political İnstability And Economic Growth: Evidence From Two Decades of Transition in CEE, Communist And Post-Communist Studies No:46 (2013) pp.189–202, http://dx.doi.org/10.1016/j.postcomstud.2013.03.008
• Gür, T.H. ve Akbulut, H. (2012). Gelişmekte Olan Ülkelerde Politik İstikrarın Ekonomik Büyüme Üzerindeki Etkisi, Sosyoekonomi Dergisi, Cilt:17, Say:17, pp. 281-301, Available :http://dergipark.ulakbim.gov.tr/sosyoekonomi/article/view/5000080634
• Jong A Pin, R. (2008). Essays On Political Instability: Measurement, Causes And Consequences, Enschede:PrintPartners Ipskamp B.V. Enschede, The Netherlands, Available: http://www.rug.nl/research/portal/files/13152417/thesis.pdf.
• Kalay, M. ve Çetin, D. (2016). Afrika Ülkelerinde Politik İstikrar ve Ekonomik Büyüme, İnsan ve Toplum Bilimleri Araştırmaları Dergisi, Cilt:5 Sayı:7 Sayfa:2277-2290, Available: http://dergipark.gov.tr/download/article-file/226746.
• Karahan, H. ve Karagöl, E.T. (2014). Ekonomik Performansın Temel Taşı: Siyasi İstikrar, SETA Perspektif, Sayı:41, Available: http://file.setav.org/Files.pdf.
• Koirala, B. ve Gyanwaly, R. P. ve Shresta, S. (2005). The Relationship Between Political Instability and Economic Growth in Nepal (1975-2003), Submitted to:South Asia Network of Economic Research Institutes (SANEI), New Delhi, India.
• Kouba, L. ve Grochova L.(2011). Financial Crisis, Political İnstability And Economic Growth, The Czech Economy in the Process of Integration and Globalization, and the Development of Agricultural Sector and the Sector of Services under the New Conditions of the Integrated European Market”, project no.01/2011, Available: https://ideas.repec.org/s/men/wpaper.html.
• Lipset, S. M. (1960). Political Man, Doubleday Company, NewYork, Available: https://ia800503.us.archive.org/25/items/politicalmansoci00inlips/politicalmansoci00inlips.pdf.
• Margolis, J.E. (2010), Understanding Political Stability and Instability, Civil Wars, 12 (3), 326-345, DOI: 10.1080/13698249.2010.509568
• Mbaku, J. (1988) Political İnstability And Economic Development in Sub-Saharan Africa: Some Recent Evidence, The Review of Black Political Economy, 89-103.
• Morrison, D. G. ve Hugh M. S. (1972). Integration and instability: Patterns of African Political Development, American Political Science Review 66(3): 902–927.
• Roe, M.J. Ve Siegel, J.I. (2011). Political Instability: Effects on Financial Development, Roots in the Severity of Economic İnequality, Journal of Comparative Economics 39 (2011) 279–309, doi:10.1016/j.jce.2011.02.001
• Şanlısoy, S. ve Kök, R. (2010). Politik İstikrarsızlık ve Ekonomik Büyüme İlişkisi: Kuznets Eğrisi Yaklaşımı, Finans, Politik ve Ekonomik Yorumlar Dergisi, Cilt:47, Sayı:541, ss.9-19, Erişim: http://kisi.deu.edu.tr//selim.sanlisoy.pdf.
• Tabassam, A.H. ve Hashmi, S. H. ve Rehman, F. U. (2016). Nexus between Political Instability and Economic Growth in Pakistan, Procedia - Social and Behavioral Sciences No: 230, pp. 325–334, doi: 10.1016/j.sbspro.2016.09.041
• Uddin, A.ve Ali, H. & Masih, M. (2017). Political Stability And Growth: An Application Of Dynamic Gmm And Quantile Regression, Economic Modelling 64 (2017) 610–625, http://dx.doi.org/10.1016/j.econmod.2017.04.028