Growth and Volatility in an Era of Globalization

By M. Ayhan Kose, Eswar S. Prasad, Marco E. Terrones. International Monetary Fund Staff Papers, 2005

113 citations recorded by the source corpus.

We extend the analysis in Kose, Prasad, and Terrones (2005) to provide a comprehensive examination of the cross-sectional relationship between growth and macroeconomic volatility over the past four decades. We also document that while there has generally been a negative relationship between volatility and growth during this period, the nature of this relationship has been changing over time and across different country groups. In particular, we detect major shifts in this relationship after trade and financial liberalizations. In addition, our results show that volatility stemming from the main components of domestic demand is negatively associated with economic growth.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/c5c12b2a249aabcc1322fc4e4b3a4dde69fcf7b9

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Citations in the corpus

Financial Globalization and Economic Policies (2009, unknown): “Kraay (1998) and Quinn and Toyoda (2006) argue that there is little evidence of interaction effects while Bekaert et al.”
How Do Trade and Financial Integration Affect the Relationship between Growth and Volatility (2004, background): “This paper attempts to answer this question, which has taken on increasing importance in view of the significant increases in the volumes of international trade and financial flows over the last four decades (see Lane and Milesi-Ferretti, 2001; Kose et al., 2005, in press-b).”
Fertility Determinants and Economic Uncertainty: An Assessment Using European Panel Data (2010, methodology): “6 immature financial and labor markets and limited trade openness (Kose et al. 2005).”