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The link between institutions, technical change and macroeconomic volatility

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  • Tang, Sam Hak Kan
  • Groenewold, Nicolaas
  • Leung, Charles Ka Yui

Abstract

This paper evaluates the role of technical change as a mediating channel through which the effects of institutions trickle down to affect growth volatility. Using different samples, estimation procedures and indicators of institutions and technical change, the results show that technical change is an important stabilizing force of growth volatility and that at least part of the stabilizing force of technical change originates from strong institutions. This conclusion does not appear to be generated by weak data, simultaneity bias or measurement errors and is remarkably robust to a large number of alternative specifications.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Macroeconomics.

Volume (Year): 30 (2008)
Issue (Month): 4 (December)
Pages: 1520-1549

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Handle: RePEc:eee:jmacro:v:30:y:2008:i:4:p:1520-1549

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Web page: http://www.elsevier.com/locate/inca/622617

Related research

Keywords: Institutions Technical change Growth volatility Economic growth;

References

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Cited by:
  1. Chu, Angus C. & Leung, Charles K.Y. & Tang, Edward, 2012. "Intellectual property rights, technical progress and the volatility of economic growth," Journal of Macroeconomics, Elsevier, vol. 34(3), pages 749-756.

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