Danu, Berhanu (PhD)Melesse, Mulugeta2022-04-132023-11-042022-04-132023-11-042021-06http://etd.aau.edu.et/handle/123456789/31295This study investigates the nexus between political instability and economic growth in Ethiopia for the period of 1991- 2020due to the availability of data. The ARDL, co-integration approach and Error Correction Model are employed to examine the existence of long- run relationship between political instability and economic growth as well as short- run dynamics of economic growth respectively. For investigating the causal relationship among the variables of the model Granger causality test has been applied. The empirical results of the study confirm the existence of cointegration between political instability and economic growth in Ethiopia. Results show that political instability has significant and negative relation with economic growth both in long-run and short-run in general. This paper is relevant for two main reasons. First, it adds to the debate on the effects of political instability on economic growth. Second, it makes an important contribution by focusing on the case of Ethiopia, which has received little attention in the literature on political instability relation with economic growth so far, even though political instability is a constant threat to the country.en-USPolitical instabilityEconomic growthARDLECMEthiopiaThesis