Abstract:

In this study, the relationship between political stability and economic determinants between 2002 and 2017 was analyzed using the panel causality test developed by Emirmahmutoğlu and Köse (2011) in the Central and Eastern European transition economy (Czech Republic, Hungary, Estonia, Latvia, Poland, Lithuania, Slovenia, Slovakia, Romania, Bulgaria). According to the results of the analysis, a significant cause has been identified from the rate of commercial transparency to political stability in the economies of Bulgaria and Estonia. On the other hand, in the economies of Lithuania and Poland, a significant cause has been identified from the consumer price index to political stability; in Latvia, Estonia and Slovenia, the unemployment rate has been a significant cause to political stability. The political stability of the bull formed by the status of a member of the EU and the causal relationship in the economies of Lithuania, Latvia and Slovenia has been identified. Political stability in any country does not have a causal relationship.