The Impact of Political Risk On Economic Growth in BRICS-T Countries: Quantile On Quantile Approach

Abstract

Political risk arises from uncertainties in relations arising in the political, social, and economic environment. These uncertainties directly affect the economic structures of countries. The aim of the study is to reveal the relationship between the political risks of BRICS-T (Brazil, Russia, India, China, South Africa and Turkey) countries and their economic growth rates in detail using the quantile-on-quantile regression approach. According to the findings of the study, the political risk index for BRICS-T countries usually weakens the economic growth rates of countries. It is seen that political risk has a negative effect on economic growth in small values of economic growth. In high values of economic growth, while small values of political risk do not have a negative effect on economic growth, it is seen that economic growth is weakly affected in regions where political risk is high.