TY  - RPRT
        AU  - Campos, Nauro F.
AU  - Karanasos, Menelaos G.
AU  - Tan, Bin
        TI  - Two to Tangle: Financial Development, Political Instability and Economic Growth in Argentina (1896–2000)
        PY  - 2008/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 3752
        UR  - https://www.iza.org/index.php/publications/dp3752
        AB  - This paper investigates the effects of financial development and political instability on economic growth in a power-ARCH framework with data for Argentina from 1896 to 2000. Our findings suggest that (i) informal or unanticipated political instability (e.g., guerrilla warfare) has a direct negative impact on growth; (ii) formal or anticipated instability (e.g., cabinet changes) has an indirect (through volatility) impact on growth; (iii) the effect of financial development is positive and, surprisingly, not via volatility; (iv) the informal instability effects are much larger in the short- than in the long-run; and (v) the impact of financial development on economic growth is negative in the short- but positive in the long-run.
        KW  - volatility
KW  - financial development
KW  - economic growth
KW  - political instability
KW  - power-ARCH
        ER  -