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Does volatility hinder economic complexity?

Author

Listed:
  • Désiré Avom

    (Faculty of economics and management, CEREG, University of Yaoundé II Soa, Cameroon)

  • Brice Kamguia

    (Faculty of economics and management, LAREFA, University of Dschang, Cameroon)

  • Joseph Pasky Ngameni

    (Faculty of economics and management, LAREFA, University of Dschang, Cameroon)

Abstract

This paper investigates the effect of the output and terms of trade volatility on economic complexity. To this end, we apply ordinanry least square, fixed effect and System GMM approach for a panel of 119 countries over the period 1998-2017. The findings reveal that the output and terms of trade volatility negatively affects economic complexity. Our empirical results also indicate that financial development, foreign direct investment, internet and income per capita have a positive effect on economic complexity while natural ressources have a negative effect.

Suggested Citation

  • Désiré Avom & Brice Kamguia & Joseph Pasky Ngameni, 2021. "Does volatility hinder economic complexity?," Economics Bulletin, AccessEcon, vol. 41(3), pages 1187-1202.
    • Handle: RePEc:ebl:ecbull:eb-20-01144
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    References listed on IDEAS

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    2. Brice Kamguia & Sosson Tadadjeu & Clovis Miamo & Henri Njangang, 2022. "Does foreign aid impede economic complexity in developing countries?," International Economics, CEPII research center, issue 169, pages 71-88.
    3. Valentine Soumtang Bime & Dieudonné Mignamissi & Agathe Cassandra Koumis Ngagni, 2024. "Does financial openness matter for economic transformation in sub-Saharan Africa?," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-49, April.
    4. Nathapornpan Uttama & Popkarn Arwatchanakarn, 2023. "How do economic complexity and productive capacities foster foreign direct investment flows? Evidence from the Asian economies," Economics Bulletin, AccessEcon, vol. 43(1), pages 629-643.
    5. Brice Kamguia & Ronald Djeunankan & Sosson Tadadjeu & Henri Njangang, 2024. "Does macroeconomic instability hamper access to electricity? Evidence from developing countries," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 32(2), pages 387-414, April.
    6. Valentine, Soumtang Bime & Itchoko Motande, Mondjeli Mwa Ndjokou & Salim Ahmed, Vessah Mbouombouo, 2024. "Revisiting natural resources and economic complexity nexus: Does financial development matter in developing countries?," Resources Policy, Elsevier, vol. 93(C).
    7. Sakiru, Solarin Adebola & Gil-Alana, Luis A. & Gonzalez-Blanch, Maria Jesus, 2022. "Persistence of economic complexity in OECD countries," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 603(C).

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    More about this item

    Keywords

    Economic complexity; Output volatility; Terms of trade volatility;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • F2 - International Economics - - International Factor Movements and International Business

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