Economic Development Analysis Journal
Vol 13 No 1 (2024): Economics Development Analysis Journal

Economic Growth in OIC Countries: The Role of Political Stability

Ahmad Nailul Hikam (UIN Sunan Kalijaga Yogyakarta)
Taosige Wau (UIN Sunan Kalijaga Yogyakarta)
Muhammad Ghafur Wibowo (UIN Sunan Kalijaga Yogyakarta)
Ibnu Muhdir (UIN Sunan Kalijaga Yogyakarta)



Article Info

Publish Date
18 Apr 2024

Abstract

Economic growth is an important indicator to assess the economic condition of a country. Various factors greatly influence economic growth, and one of the important factors is the country's political stability. This study aims to analyze the factors affecting OIC countries' economic growth. These factors are foreign direct investment, trade openness, human capital, tourism, and political stability. This study uses panel data from 28 OIC countries during the 2006-2020-time span. This study estimates the model using the Generalized Method of Moment (GMM) analysis technique. The estimation results show that all independent variables have a significant positive effect on the economic growth of OIC countries except foreign direct investment, which produces a negative effect. The interaction between political stability and other variables also produces a significant effect. The interaction effect can strengthen the influence of human capital and tourism on economic growth. The resulting interaction effect between political stability with FDI and trade openness weakens its influence on economic growth. Thus, the high political stability needed to increase economic growth in OIC countries depends on its interaction with other factors in economic growth

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Journal Info

Abbrev

edaj

Publisher

Subject

Economics, Econometrics & Finance

Description

Focus and Scope Economic Development Analysis Journal is a scientific journal who published by Department of Economic Development, Faculty of Economics, Universitas Negeri Semarang, Indonesia. this journal published four times per year on February, May, August, and November and start publishing ...