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

[thumbnail of 1384856224.pdf]

Download (757kB) | Preview


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: https://eprints.ugd.edu.mk/id/eprint/8308

Actions (login required)

View Item View Item