Abstract:

The interaction between politics and economics in the study is examined within the context of political instability and it is aimed to examine the effects of indicators such as political stability, investment, money supply, openness, unemployment, public expenditures and consumer price index reflecting macroeconomic performance on the fluctuations in the economy. For this purpose, panel data analysis is being conducted on 66 countries from different regions classified by the World Bank and the International Monetary Fund as middle low-middle upper income countries and with no difficulties in data provision for the period 2002-2013. As a result of the analysis, the political stability index affects the countries in the middle lower and middle upper income group, indicating that countries should make significant improvements in the democratization process, in constitutional, social, administrative, economic and political areas. In the countries with middle lower and middle upper income groups, the fragile structure in these areas and the frequent views of Opportunist, Myopia-Polarization, Social Disorder and Weak Government Approaches also have an effect on the cyclical fluctuations in these countries. Therefore, it is necessary to extensively assess the results of the correct analysis of the progress of economies and the determination of the economic policies that lead to a growing economic structure in a long-term stable structure.