IMPACT OF POLITICAL

INSTABILITY ON
ECONOMIC GROWTH
BUSINESS RESEARCH METHOD
 INTRODUCTION

 Economists view political instability as a severe economic

depression. Achievement of most short-term macroeconomic
policies are likely to be the outcome of policymakers' shortened
horizons due to political instability
 Unrest in politics, for example measured by the number of cabinet
changes, or the arrival of a new prime minister each year. In fact,
new ministers hold named roles and/or more than 50% of cabinet
posts. Demonstrating globally considerable regional variations.
 PROBLEM STATEMENT
 The Global Economic Landscape
The political events that cross national boundaries and have an impact
on economic indicators like GDP, investment trends, and business
confidence characterize the global economic landscape.
 The Business Dilemma
As important engines of economic growth, businesses are especially
exposed to the negative effects of political unrest.
 The Need for Informed Decision-Making
Businesses, investors, and policymakers need to have an advanced
awareness of the possible effects of political instability on economic
growth in an era where global risks are on the rise.
 RESEARCH OBJECTIVE

 To Examine the Relationship Between Political Instability and

Economic Growth
 To Identify Specific Aspects of Political Instability Affecting
Businesses
 To Explore the Impact of Political Instability on Business
Operations
 To Analyze the Perception of Business Stakeholders on Political
Stability
 RESEARCH QUESTION

 What is the primary relationship between political stability and

economic growth, according to the analysis in the report on the
"Impact of Political Instability on Economic Growth"?
 How does political instability influence Foreign Direct Investment
(FDI) and what are the consequences for a country's economic
growth, as discussed in the report?
 In what ways can political instability disrupt government spending
and fiscal policies, and what implications does this have for long-
term economic planning?
 LITERATURE REVIEW

 Historical Perspectives
 Economic Indicators and Business Performance
 Government Policies and Economic Stabilization
 Stakeholder Perceptions and Decision-Making
 Research Questions and Hypotheses
 CONCEPTUAL FRAMEWORK

 Core Concepts
Political Instability
Economic Growth
Business Operations
 Mediating Factors
Government Policies
Industry-Specific Dynamics
 METHODOLOGY
 RESEARCH DESIGN :

 Qualitative research and Quantitative research

 DATA TYPE:

 Secondary data

 DATA COLLECTION:

 Surveys, observations and secondary data analysis.

 MEASUREMENT:

 Nominal scale,Ratio scale and Likert scale

 RESULTS
 Negative Correlation with GDP Growth
 Statistical analysis revealed a robust negative correlation between political
instability and GDP growth. Countries experiencing higher levels of
political uncertainty consistently demonstrated lower economic growth
rates.
 Foreign Direct Investment (FDI) Trends
 The study found a clear link between political instability and reduced
foreign direct investment.
 Inflationary Pressures
 The volatility associated with political uncertainty often led to fluctuating
economic conditions, resulting in inflationary pressures that impacted
businesses and consumers alike.
 CONCLUSION

That political instability significantly influences economic growth. The

observed negative correlation with GDP growth underscores the
vulnerability of economies to periods of political uncertainty. The
decline in foreign direct investment during such times points to the
cautious stance of investors in the face of heightened risk, impacting
overall economic performance.
THANK YOU