The Mediating Effect of Political Corruption on the Relationship between Political Stability and Economic Development: A Cross-Country Analysis

This study investigates the mediating role of corruption in the relationship between political stability and economic development using cross-country data. Employing Ordinary Least Squares (OLS) regression and mediation analysis based on the Baron and Kenny (1986) framework, the study estimates both direct and indirect effects. The findings indicate that political stability significantly enhances economic growth, while control of corruption partially mediates this relationship. Specifically, politically stable environments reduce corruption, which in turn improves economic performance. The results highlight corruption as an important transmission mechanism linking institutional quality and economic outcomes. Policy implications emphasize the need to strengthen governance institutions alongside maintaining political stability to achieve sustainable economic development.