The Impact of Political Instability and Corruption on Saving: A Case of Selected South East Asian Countries

Abstract

The main objective of this research is to get an understanding of the ways in which the financial stability of ASEAN states is impacted by political instability and instances of corruption. Because corrupt government workers and political appointees siphon money that was intended for the government treasury into their own pockets instead, the amount of revenue that the government receives is reduced as a result. As a consequence, the ability of the government to put into action policies that fight against poverty and underdevelopment is hindered. Similar is the case with political instability which slow down the government machinery. The study with the aid of panel data methodology on the panel data of twenty years from 1998 -2018. Found that the corruption and political instability are in significant negative relationship with saving. In addition to that we have also investigated the impact of interaction of political instability and corruption on saving. Over all the results provided support to the prosed hypothesis. This study which is among pioneering studies on the issue will provide policy guideline to ranchers and policy makers