The impact of political stability on economic growth in OPEC countries

Abstract

Nations endowed with rich natural resources have experienced substantial hindrances to their economic development due to political instability. Given that the Organization of the Petroleum Exporting Countries (OPEC) is a major oil producer, its economic well-being is closely linked to oil prices and political stability. This study aims to analyze the impact of political stability on OPEC nations' economic advancement over 20 years (2001–2020). It seeks to provide insights into how political dynamics influence economic outcomes in these countries. This study investigates the relationship between political stability and economic development using a panel dataset of OPEC states from 2001 to 2020. The study employs Fixed Effects and Random Effects models. The findings indicate a statistically significant and favorable correlation between political stability and economic advancement in OPEC nations. Countries with more political stability inside the organization tend to have more beneficial economic outcomes, as shown by their higher GDP per capita.

Keywords

• OPEC countries, economic growth, political stability, resource-rich countries.
• Países de la OPEP, crecimiento económico, estabilidad política, países ricos en recursos.