Umair Abbas (0031)

Ali Mardan khan (0017)

Muneeb Ahsan (0022)

UMAIR Ahmed (0042)

SHAHID AWAR (0034)

SUCCESSOR GROUP

Impact Of Politically Instability On Economic Growth

TOPIC

INTRODUCTION

According to the MARSHALL principle of the economics, economist have been trained to believe that market competition maximize the welfare of the consumer in here us monopoly and market power create economic result that market produce better off ; some economist try to apply this notion on political market and techniques which use is benchmark to evaluate the performance of political equilibrium. the little activities is conducting in ITLY city the people gives the right to those the policy of the market and work under their choice but the policy did not works. The people did not measure exact benchmarking and data to work properly.

Our main purpose is to measure the politically instability impact on economic growth and dictatorship is main key element of poverty the money is not revolves and the poor people did not get the job and money is not rotate. In current situation Pakistan still did not stable political and economically because all the departments are not works properly.

INTRODUCTION

LITERATURE REVIEW

In 1988 (Soh) study how the political instability will affect the economic fluctuations of country.

There they will use Gross National Product Model to conclude result that dependent upon the created political data set .Future research must evolve obtaining and analyzing more objective political data.

In 1995 (Brunetti) studied that political instability will affect the Democracy of the country.

In 2001(Ali) this article the effect of independent variable on dependent variable. Here political instability effect the economic growth of the country. They use regression model that the result show that policy has a more dramatic and signification impact on growth than political instability.

In 2014 (Zubair) The good Governance of any country will effect there economic Growth. In this Article they use regression analysis Model to conclude that the political stability contributes high toward economic growth. this will fall between 1981 to 2014.

LITERATURE REVIEW

Theoretical Framework

Impact Of Politically Instability On Economic Growth

STEP – 1 Inventory Variables

Independent Variable :

Political Instability

Dependent Variable :

Economic GrowthGross Domestic Product (GDP)Gross National Product(GNP)Standard of Living

Change in Political Instability Change in Gross Domestic Product

Change in Gross National Product

Change in Standards of Living

Change in Economic Growth

STEP – 2 DIRECTION

Logic – 1 When a country did not have stability in his political environment in a country. then they did not boost up his economic growth according to there willing.

Logic – 2 Whenever there is instability in political environment of a country. It will effect directly towards stock market of that country which result in stop running project of that country. Investors are not willing to invest there in such instable environment.

Logic – 3 During the period of instability of political environment of a country. The standard of living of people are decreases. That’s indicate that the growth of the country is going backward.

LOGICSSTEP – 3

Step – 4 PROPOSITION OF INVENTORY

Change in Political stability result in change in Economic Growth.

If the GDP & GNP is increasing. There will be more employment opportunities available for the people of that country. People earning increase that will enhance there living standard. That will result that country will on way to start progressing by leap and bounds.

By stabling the Political environment the employment , GDP & GNP are increase.

Change in Political stability result in change in Economic Growth.

By stabling the Political environment the employment , GDP & GNP are increase.

If the GDP & GNP is increasing. There will be more employment opportunities available for the people of that country. People earning increase that will enhance there living standard. That will result that country will on way to start progressing by leap and bounds.

SEQUENCE OF PROPOSITION

STEP – 5

STEP –6

DIAGRAM

Political Instability

Economic Growth

Political Instability

Economic Growth

HYPOTHESIS

H1= If political instability increases then economics growth will be decreases.

H2= If political instability decreases then economics growth will be increases.