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Growth and Volatility in an Era of Globalization

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Author Info
M. Ayhan Kose (International Monetary Fund)
Eswar S. Prasad (International Monetary Fund)
Marco E. Terrones (International Monetary Fund)

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Abstract

We extend the analysis in Kose, Prasad, and Terrones (2005) to provide a comprehensive examination of the cross-sectional relationship between growth and macroeconomic volatility over the past four decades. We also document that while there has generally been a negative relationship between volatility and growth during this period, the nature of this relationship has been changing over time and across different country groups. In particular, we detect major shifts in this relationship after trade and financial liberalizations. In addition, our results show that volatility stemming from the main components of domestic demand is negatively associated with economic growth. Copyright 2005, International Monetary Fund

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Article provided by Palgrave Macmillan Journals in its journal IMF Staff Papers.

Volume (Year): 52 (2005)
Issue (Month): si ()
Pages: 4
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Handle: RePEc:pal:imfstp:v:52:y:2005:i:si:p:4

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Find related papers by JEL classification:
E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Elena Andreou & Alessandra Pelloni & Marianne Sensier, 2008. "Is Volatility Good for Growth? Evidence from the G7," Centre for Growth and Business Cycle Research Discussion Paper Series 97, Economics, The Univeristy of Manchester. [Downloadable!]
    Other versions:
  2. Tarisa Watanagase, 2007. "Emerging markets in financial globalization: striking the right balance for liberalization," Proceedings, Federal Reserve Bank of San Francisco. [Downloadable!]
  3. Barbara Annicchiarico & Luisa Corrado & Alessandra Pelloni, 2008. " Long-Term Growth and Short-Term Volatility: The Labour Market Nexus," CDMA Working Paper Series 0806, Centre for Dynamic Macroeconomic Analysis. [Downloadable!]
    Other versions:
  4. Martín González-Rozada, Mirta Molinari and Mario Virgolini, 2008. "The Economic Impact of Smoke-Free Laws on the Sales of Bars and Restaurants in Argentina," Business School Working Papers 2008-03, Universidad Torcuato Di Tella. [Downloadable!]
  5. Bonilla, Eugenio Diaz, 2008. "Global macroeconomic developments and poverty:," IFPRI discussion papers 766, International Food Policy Research Institute (IFPRI). [Downloadable!]
  6. Pierre-Richard Agénor & Joshua Aizenman, 2007. "Aid Volatility and Poverty Traps," NBER Working Papers 13400, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Andrew K. Rose & Mark M. Spiegel, 2008. "International Financial Remoteness and Macroeconomic Volatility," NBER Working Papers 14336, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  8. George Hondroyiannis, 2009. "Fertility Determinants and Economic Uncertainty:An Assessment Using European Panel Data," Working Papers 96, Bank of Greece. [Downloadable!]
  9. Elena Andreou & Marianne Sensier & Alessandra Pelloni, 2008. "Is Volatility Good for Growth?," Working Paper Series 37-08, Rimini Centre for Economic Analysis, revised Jan 2008. [Downloadable!]
  10. Fabrizio Carmignani & Abdur Chowdhury, 2007. "The Role of Primary Commodities in Economic Development: Sub-Saharan Africa Versus the Rest of the World," ECE Discussion Papers Series 2007_7, UNECE. [Downloadable!]
  11. Yilmaz Akyuz, 2006. "From Liberalization To Investment and Jobs: Lost in Translation," Working Papers 2006/3, Turkish Economic Association. [Downloadable!]
  12. Calderon, Cesar & Yeyati, Eduardo Levy, 2009. "Zooming in : from aggregate volatility to income distribution," Policy Research Working Paper Series 4895, The World Bank. [Downloadable!]
    Other versions:
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