Volatility and growth

Koteski, Cane and Josheski, Dushko and Dimitrov, Nikola and Jakovlev, Zlatko and Bardarova, Snezana and Serafimova, Mimoza (2013) Volatility and growth. Wulfenia Journal, 20 (12). pp. 1-12. ISSN 1561-882X


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The issue about the association between volatility of output growth and output growth has been subject of research among economists. Some economists found negative association, while others found positive association. If one reads through this literature he will find out that there are many reasons to believe that there exist positive association between volatility and growth, and so there are as many reasons to believe that there exists negative association between volatility and growth. This paper proves that there exists positive association between volatility and growth on a large sample of pooled cross-country data (from all geographic regions). The inclusion of other variables in the models especially quality of institutions does not seem to reduce volatility. Inclusion of macroeconomic imbalances (Black Market Premium), and trade (Real/Current openness), does not affect volatility much but also does not affect GDP growth neither, since this variables lack statistical significance. Other variables from the neo-classical function (human capital, initial output, physical capital (investment), and convergence) affect GDP growth as expected.

Item Type: Article
Subjects: Social Sciences > Economics and business
Social Sciences > Social and economic geography
Divisions: Faculty of Tourism and Business Logistics
Depositing User: Cane Koteski
Date Deposited: 04 Dec 2013 15:17
Last Modified: 05 Dec 2013 08:45
URI: http://eprints.ugd.edu.mk/id/eprint/8308

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