Date of Award
Fall 2024
Degree Type
Open Access Dissertation
Degree Name
Political Science and Economics, PhD interfield
Program
School of Social Science, Politics, and Evaluation
Advisor/Supervisor/Committee Chair
Yi Feng & Thomas Willett
Dissertation or Thesis Committee Member
Graham Bird
Dissertation or Thesis Committee Member
Melissa Rogers
Terms of Use & License Information
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 License.
Rights Information
© 2024 Francis J Assenga
Keywords
Africa, economic growth, inequality, macroeconomics, political instability, political institutions
Subject Categories
Economics | Economic Theory | Political Science
Abstract
The examination of the relationship between political instability and economic growth is critical in today's global economy, especially in African nations facing multifaceted challenges. Over recent decades, this connection has been a key area of focus for economic scholars, driving significant empirical research. Previous studies, which examined the dynamics of this relationship consistently underscore the profound interconnectedness of economic growth and political stability in the sense that, political instability hampers economic growth, while economic downturns can trigger political unrest and government collapse.
Our study empirically investigates the linkage between economic growth, political instability, and inequality in Africa, analyzing data from all 54 African countries over a 60-year period (1961–2020). GDP per capita growth is used as a proxy for economic growth, while major cabinet changes serve as a key indicator of political instability due to their availability and long-term data consistency. The study also explores the role of economic and social inequalities in influencing both economic growth and political stability. Including the North African sub-region enriches the analysis by offering a broader perspective on the unique geopolitical and socio-economic dynamics influencing economic growth and political stability.
Using panel data, five distinct estimation methods were employed to analyze these relationships. The results generally confirm that political instability has a statistically significant negative effect on economic growth. However, the reverse relationship on how economic growth affects political instability produced mixed results, with growth reducing instability in some cases and exacerbating it in others. Similarly, the impact of inequality on both growth and political stability varied across models by producing mixed outcomes.
To bridge the gap between theory and practice, we have incorporated findings from field research visits conducted in six selected African countries. These visits offered valuable insights that enriched our study by providing practical, on-the-ground perspectives. The field findings largely validate the theoretical framework, reinforcing the importance of macroeconomic factors in shaping economic growth and political stability. Key challenges identified include inflation, underdeveloped financial markets, exchange rate management issues, weak risk management infrastructure, and low financial literacy, each posing significant hurdles to Africa’s economic development.
ISBN
9798346863045
Recommended Citation
Assenga, Francis Joseph. (2024). Empirical Linkage Between Economic Growth and Political Instability and the Effects of Inequalities in Africa. CGU Theses & Dissertations, 899. https://scholarship.claremont.edu/cgu_etd/899.
