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The Link Between Output Growth and Output Growth Volatility: Barbados

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  • Terence D. Agbeyegbe

    (Hunter College and The Graduate Center)

Abstract

This article investigates the effect of output volatility on output growth in Barbados, a small island developing state located in the Caribbean, based on data from 1976 through 2018. I conduct the analysis using the Stochastic Volatility in Mean model with time-varying parameters. The evidence suggests that output growth volatility, measured by stochastic volatility, negatively links with output growth at the aggregate level. I also examine disaggregate output data in order to understand this link better. The sectoral evidence suggests a positive link for services, a negative link for manufacturing, and a weak link for agriculture and the industrial sectors.

Suggested Citation

  • Terence D. Agbeyegbe, 2023. "The Link Between Output Growth and Output Growth Volatility: Barbados," Annals of Data Science, Springer, vol. 10(3), pages 787-804, June.
    • Handle: RePEc:spr:aodasc:v:10:y:2023:i:3:d:10.1007_s40745-021-00331-2
    DOI: 10.1007/s40745-021-00331-2
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