The impact of volatility on economic growth

Aurelijus Dabušinskas, Dmitry Kulikov () and Martti Randveer ()

No wp2012-7, Bank of Estonia Working Papers from Bank of Estonia

Abstract: This paper investigates the impact of macroeconomic volatility on growth in a panel of 121 countries over the period 1980 to 2010. We confirm the Ramey and Ramey (1995) result that macroeconomic volatility is negatively related to economic growth using a different empirical methodology and a newer dataset. Among the issues that await further work are the interaction of financial development and volatility, potential non-linearities of the impact of macroeconomic volatility on growth, and issues related to the endogeneity of growth and volatility in the context of empirical growth regression models

Keywords: economic growth; macroeconomic volatility; growth regressions; panel data (search for similar items in EconPapers)
JEL-codes: C33 E40 O40 (search for similar items in EconPapers)
Date: 2013-02-04, Revised 2013-02-04
New Economics Papers: this item is included in nep-fdg and nep-mac
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Citations: View citations in EconPapers (1)

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