The Effects of Economic and Political Uncertainty on Economic Growth: A Panel Data Analysis on The G-7+BRC Countries (1997-2015)

In this study, the effects of economic and political uncertainties on economic growth performances of developed the G-7 and developing the BRC (Brazil, Russia, China) countries are examined econometrically in the context of the new generation panel data analysis methodology for the period 1997-2015. In the study this direction, it is empirically assessed whether economic and political uncertainties have an impact on the economic growth performances of the G7+BRC countries as predicted in the theoretical framework. As a result of the study, during the review period the effects of economic and political uncertainties on economic growth in G7 + BRC countries have been determined to be negative direction and statistically significant. These results suggest that the the economic contractions that emerged with the 2008 economic crisis in countries developed the G-7 with developing the BRC has been continued and the desired recovery has not been achieved in the process, uncertainties stemming from economic and political developments also play an important role.