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Growth volatility and resource curse: Does financial development dampen the oil shocks?

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  • Moradbeigi, Maryam
  • Law, Siong Hook

Abstract

We assess whether well-developed financial system can moderate the positive association between oil volatility and growth volatility. Using a core sample of 63 oil-producing countries over the period 2000–2010, the empirical analysis confirms a negative link between oil terms of trade volatility and growth volatility. In addition, we find evidence that financial development dampens the effect of oil terms of trade volatility.

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  • Moradbeigi, Maryam & Law, Siong Hook, 2016. "Growth volatility and resource curse: Does financial development dampen the oil shocks?," Resources Policy, Elsevier, vol. 48(C), pages 97-103.
    • Handle: RePEc:eee:jrpoli:v:48:y:2016:i:c:p:97-103
    DOI: 10.1016/j.resourpol.2016.02.009
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    More about this item

    Keywords

    Financial development; Oil volatility; Growth volatility;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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