Political stability is conducive to economic expansion from "summary" of Theory of Economic Growth by W. Arthur Lewis
Political stability is a key factor in creating an environment that is conducive to economic expansion. When a country is politically stable, it provides a sense of security to both domestic and foreign investors. This security encourages investment in various sectors of the economy, leading to increased economic growth. In a politically stable environment, businesses can operate without the fear of sudden policy changes or disruptions caused by political unrest. This certainty allows businesses to make long-term plans and investments, which in turn leads to greater productivity and economic expansion. Investors are more willing to commit their resources to a country where the political situation is stable, as they are confident that their investments will be protected. Political stability also fosters trust and cooperati...
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