The Relationship between Political and Economic Development in Selected Countries

Political and economic development are like two wings of a developed system. In fact, in a developed system, political and civic development is directly and intuitively important and should not be justified and assessed indirectly and with its effect on the economic system. Of course, economic development creates conditions for political development in countries, which shows the necessity of examining these two categories. The present paper used the simultaneous equation system to examine the relation between economic indicators and political indicators of development during 2006-2014 in two groups of developed and developing countries. The results of this study showed the direct and positive effect of political development on economic development, as well as the direct and positive effect of economic development on political development. Therefore, based on the evidence of the present study, sustainable development can be created by establishing appropriate platforms and the correlation between political and economic development.

Keywords:

Economic development , Political development , Simultaneous equation system , Political economic