Effects of Terms of Trade and its Volatility on Economic Growth: A Cross Country Empirical Investigation
AbstractThis study examines the effects of terms of trade and its volatility on economic growth for a sample of 94 developed and developing countries, using five year average annual data from 2004 to 2008. The cross country ordinary least square estimation results indicate significant positive effect of terms of trade on economic growth. Furthermore, volatility of terms of trade has significant positive effect on economic growth. To test the robustness of initial results, sensitivity analysis has been performed using different additional variables, sample size and various proxies of volatility variable. The initial results were found robust despite the inclusion of various variables in the basic model and use of various proxies for volatility of terms of trade.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 32694.
Date of creation: 07 May 2011
Date of revision:
Terms of trade; Volatility; Economic Growth;
Other versions of this item:
- Syed Jawaid & Abdul Waheed, 2011. "Effects of Terms of Trade and its Volatility on Economic Growth: A Cross Country Empirical Investigation," Transition Studies Review, Springer, vol. 18(2), pages 217-229, December.
- F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-15 (All new papers)
- NEP-FDG-2011-08-15 (Financial Development & Growth)
- NEP-INT-2011-08-15 (International Trade)
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