THE IMPACT OF INCREASING POLITICAL INSTABILITY ON ECONOMIC GROWTH AND CO2 EMISSION IN THAILAND

Abstract

The prime objective of the current study is to investigate the impact of political instability and macroeconomic growth on the CO2 emission in Thailand.  In addition to that the impact of CO2 emission and political instability on the real GDP is also observed. Thailand is the Asean country with highest value of political instability. Political instability also reduces reliability in forecasting that could result in minimal short-term policy making. Remarkable regional differences can be measured through political instability index by cabinet changes. The political instability index determines how many times a premier change in a year, in addition to this new staff is also replaced with 50% of the members of the cabinet. The ARDL is used on the data collected over the period of 27 years 1987 to 2014. The findings of the study have provided support to the proposed results. Numerous studies have been conducted and various theories have been illustrated, approved or rejected, consequently. The present study focuses upon the governments’ political instability, and which type of government is considerably more fragile or more stable. The study will be helpful for policymakers, legislators and researchers and understanding relationship between political instability, CO2 emission, Trade, energy consumption, and economic growth in an merging economy like Thailand.