The Relationship between Political Stability and GDP Growth: A Comparative Analysis of the Brics Nations

• Main Authors: Ifeanyi Mbukanma, Ravinder Rena, Kelechi Johnmary Ani
• Format: Article
• Language: English
• Published: Danubius University 2019-12-01
• Series: Acta Universitatis Danubius: Oeconomica
• Subjects: political stability; gdp growth; emerging economy; brics nations
• Online Access: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/6033/5352

In many parts of the globe, the degree of political stability or otherwise largely determines the nature of nation building process. Ironically, both developed and developing countries at one time or another faces the challenge of poor political stability in their political dynamics and nation building history. This study investigates the nature of political stability amongst the BRICS nations with special emphasis on how it affects the Gross Domestic Product (GDP) of member states. The study was developed using quantitative methodology. Data on political stability were interpreted through regression analysis. The findings reveal that the degree of variation in economic growth due to political stability in the BRICS is relatively low but numerically, the higher the rate of political stability, the higher the positive growth of GDP within BRICS nations. Finally, it was recommended that nations within the BRICS member states should cooperate to ensure sustainable peace and political stability across their regions and multi-lateral organizations in order to have a positive GDP growth.