Political Instability and Economic Growth in the State of Yemen Analysis Study

Abstract

This paper explores the drivers of political instability and how political instability affects the economy in the context of Yemen. It is a low country income, although the critical location is at the southern end of the Arabian Peninsula with 200 islands. The country is rife with terrorists and lives under much socio-political strife. We implemented an empirical model to test the correlations and multiple regression between political instability and economic growth. The study found that there is a high negative correlation between volatility and economic growth with negative correlations value. Furthermore, we investigate the significance of the regression -enter method- stepwise method which show the existence of the impact of the political instability index conflict, and civil war in economic growth.