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Geography, macroeconomic vulnerability and economic performance

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  • Yeti Nisha Madhoo
  • Shyam Nath

Abstract

The objective of the paper is to empirically examine the effects of macroeconomic volatility on growth and other indicators of welfare incorporating more particularly geography produced diverse conditions that are either growth promoting or growth hampering. We extend the literature on macroeconomic volatility, growth and welfare by integrating the macroeconomics and new development economics literature on cross-country growth performance by capturing factors beyond neoclassical and new growth approaches. Empirical results confirm that growth outcomes under different geography-produced favorable and adverse conditions have the potential of minimizing and exacerbating the effects of macroeconomic variability. The significance of geography and its links with institutions is highlighted and adverse growth and welfare effects of income inequality, coastal openness and trade openness are analyzed.

Suggested Citation

  • Yeti Nisha Madhoo & Shyam Nath, 2012. "Geography, macroeconomic vulnerability and economic performance," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 2(2), pages 1250006-125.
    • Handle: RePEc:gok:ijdcv1:v:2:y:2012:i:2:p:1250006
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    File URL: http://www.worldscientific.com/doi/abs/10.1142/S2010269012500068
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