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Uncertainty, Investment and Economic Growth: Evidence from a Dynamic Panel

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  • Dimitrios Asteriou
  • Simon Price

Abstract

This paper studies the interactions between uncertainty, investment and economic growth. Utilizing panel data for a sample of 59 industrial and developing countries between 1966 and 1992, we estimate reduced form equations to explore the possible effects of uncertainty on economic growth and investments. Uncertainty reduces both investment and growth. Copyright Blackwell Publishing Ltd 2005.

Suggested Citation

  • Dimitrios Asteriou & Simon Price, 2005. "Uncertainty, Investment and Economic Growth: Evidence from a Dynamic Panel," Review of Development Economics, Wiley Blackwell, vol. 9(2), pages 277-288, May.
  • Handle: RePEc:bla:rdevec:v:9:y:2005:i:2:p:277-288
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Amber Fatima & Abdul Waheed, 2014. "Economic uncertainty and growth performance: a macroeconomic modeling analysis for Pakistan," Quality & Quantity: International Journal of Methodology, Springer, pages 1361-1387.
    2. Vivek Ghosal & Yang Ye, 2015. "Uncertainty and the employment dynamics of small and large businesses," Small Business Economics, Springer, pages 529-558.
    3. Ho, Sin-Yu & Njindan Iyke, Bernard, 2017. "Consumption and Exchange Rate Uncertainty: Evidence from Selected Asian Countries," MPRA Paper 80096, University Library of Munich, Germany.
    4. repec:taf:applec:v:49:y:2017:i:45:p:4521-4529 is not listed on IDEAS
    5. Ana Barreira & Rui Nuno Baleiras, "undated". "Cycles On Public Expenditure Composition Within the European Union," Regional and Urban Modeling 283600004, EcoMod.
    6. Mohey-ud-din, Ghulam & Siddiqi, Muhammad Wasif, 2013. "GDP Fluctuations and Private Investment: A Macro Panel Analysis of Selected South Asian Countries," MPRA Paper 60231, University Library of Munich, Germany, revised 15 Jun 2014.
    7. Mellati, Ali, 2008. "Uncertainty and investment in private sector: An analytical argument and a review of the economy of Iran," MPRA Paper 26655, University Library of Munich, Germany.
    8. Hasan, Iftekhar & Marton, Katherin, 2003. "Development and efficiency of the banking sector in a transitional economy: Hungarian experience," Journal of Banking & Finance, Elsevier, vol. 27(12), pages 2249-2271, December.
    9. Eleftherios Goulas & Athina Zervoyianni, 2013. "Growth, Deficits and Uncertainty: Theoretical Aspects and Empirical Evidence," Working Paper series 53_13, Rimini Centre for Economic Analysis.
    10. Mickaël Clévenot & Marie Silvère Mbome, 2014. "Reassessing Vulnerability to Macroeconomic Volatility: a nonstationary panel approach," CEPN Working Papers hal-00951544, HAL.
    11. Amber Fatima & Abdul Waheed, 2011. "Effects of Macroeconomic Uncertainty on Investment and Economic Growth: Evidence from Pakistan," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), pages 112-123.
    12. Eleftherios Goulas & Athina Zervoyianni, 2013. "Economic growth and crime: does uncertainty matter?," Applied Economics Letters, Taylor & Francis Journals, vol. 20(5), pages 420-427, March.
    13. Stavros Degiannakis & George Filis & George Palaiodimos, 2017. "Investments and uncertainty revisited: the case of the US economy," Applied Economics, Taylor & Francis Journals, vol. 49(45), pages 4521-4529, September.
    14. Kim, Byung-Yeon & Korhonen, Iikka, 2005. "Equilibrium exchange rates in transition countries: Evidence from dynamic heterogeneous panel models," Economic Systems, Elsevier, vol. 29(2), pages 144-162, June.
    15. Vivek Ghosal & Yang Ye, 2015. "Uncertainty and the employment dynamics of small and large businesses," Small Business Economics, Springer, pages 529-558.
    16. Luintel, Kul B. & Mavrotas, George, 2005. "Examining Private Investment Heterogeneity: Evidence from a Dynamic Panel," WIDER Working Paper Series DP2005/11, World Institute for Development Economic Research (UNU-WIDER).
    17. Fabrizio Carmignani, 2003. "Political Instability, Uncertainty and Economics," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 1-54, February.
    18. Goulas, Eleftherios & Zervoyianni, Athina, 2013. "Growth, deficits and uncertainty: Theoretical aspects and empirical evidence from a panel of 27 countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 53(4), pages 380-392.

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