Political instability negatively impacts economic growth. When a country lacks political stability, it discourages investment and hinders projects, slowing economic growth. Unstable political environments decrease standards of living as GDP and GNP fall, employment opportunities decline, and people's incomes drop. Conversely, stabilizing politics boosts employment, GDP, and GNP, increasing standards of living and putting the country on a path toward stronger economic progress. The hypothesis is that increased political instability leads to decreased economic growth, while decreased political instability spurs increased economic growth.

2. Umair Abbas (0031)
Ali Mardan khan (0017)
Muneeb Ahsan (0022)
UMAIR Ahmed (0042)
SHAHID AWAR (0034)

3. Impact Of Politically Instability On Economic Growth
TOPIC

4. 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.

5. 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

6. 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.

7. 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

8. Theoretical Framework
Impact Of Politically Instability On Economic Growth
STEP – 1 Inventory Variables
Independent Variable :
Political Instability
Dependent Variable :
Economic Growth
Gross Domestic Product (GDP)
Gross National Product(GNP)
Standard of Living

9. 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

10. 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.
LOGICS
STEP – 3

11. 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.

12. 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

13. STEP –6
DIAGRAM
Political
Instability
Economic
Growth
Political
Instability
Economic
Growth

14. HYPOTHESIS
H1= If political instability increases then economics growth will be decreases.
H2= If political instability decreases then economics growth will be increases.