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Measuring the Dissemination of Volatility across Levels of Development


  • Edwards Jeffrey A

    () (North Carolina A&T State University)

  • Thames Frank C.

    () (Texas Tech University)

  • Edwards Martin S.

    () (Seton Hall University)


Using levels of democratic development as a proxy for economic development, and using a 2SLS GMM dynamic panel estimation methodology, we investigate the degree and direction of dissemination in the volatility of economic growth. Our findings indicate two essential points. First, there are differences along the democratic continuum of the ability of a countrys economic growth volatility to affect other countries. Thus, an economic recession for example in one country, does not affect all countries equally across regime type. Second, growth volatility is not simply a North-South phenomenon, but a South-South phenomenon as well. In fact, the empirical patterns found here call into question the usefulness of relying on even these simple, dichotomous views of the world.

Suggested Citation

  • Edwards Jeffrey A & Thames Frank C. & Edwards Martin S., 2006. "Measuring the Dissemination of Volatility across Levels of Development," The B.E. Journal of Macroeconomics, De Gruyter, vol. 6(2), pages 1-40, November.
  • Handle: RePEc:bpj:bejmac:v:topics.6:y:2006:i:2:n:15

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    References listed on IDEAS

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    Cited by:

    1. Edwards, Jeffrey A. & Kasibhatla, Krishna, 2009. "Dynamic heterogeneity in cross-country growth relationships," Economic Modelling, Elsevier, vol. 26(2), pages 445-455, March.
    2. Jeffrey Edwards & Frank Thames, 2010. "Growth volatility and the interaction between economic and political development," Empirical Economics, Springer, vol. 39(1), pages 183-201, August.
    3. Hal Snarr & Jeffrey Edwards, 2009. "Does income support increase abortions?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(4), pages 575-599, November.
    4. EDWARDS, Jeffrey A., 2010. "GDP Growth Volatility and Regional Free Trade Agreements," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2), pages 73-86.
    5. EDWARDS, Jeffrey, 2009. "Trading Partner Volatility And The Ability For A Country To Cope: A Panel Gmm Model, 1970-2005," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 9(2).

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