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Risk and stability: a contribution to growth empirics

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  • Rock-Antoine Mehanna

Abstract

This paper is an attempt to study the role that stable economic, financial, and political environments play in economic growth. It employs a modified version of the new growth model as developed by Barro (1997) in a sample of 80 developing countries. Unlike previous studies, the paper contemplates the government policies from a broad perspective encompassing economic, financial, and political aspects. This methodological parsimony along with the direction between stability and growth represent the main contribution of the paper. The econometric results support the essential role of stability in economic growth.

Suggested Citation

  • Rock-Antoine Mehanna, 2003. "Risk and stability: a contribution to growth empirics," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 5(2), pages 391-410.
    • Handle: RePEc:ids:gbusec:v:5:y:2003:i:2:p:391-410
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