Volatility and growth in developing countries: An asymmetric effect

Nabil Alimi

The Journal of Economic Asymmetries, 2016, vol. 14, issue PB, 179-188

Abstract: This paper investigates the relationship between macroeconomic volatility and growth and the determination of a threshold from which there is a reversal of the nature of this relationship in a panel of 47 developing countries over the period 1980–2013. Using Hansen (2000) methodology our findings prove that the relationship between macroeconomic volatility on economic growth is not linear and it looks like reversed Laffer curve as long as the volatility is below 4%.

Keywords: Economic volatility; Economic growth; Developing countries; Threshold analysis (search for similar items in EconPapers)
JEL-codes: C31 E32 O40 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joecas:v:14:y:2016:i:pb:p:179-188

DOI: 10.1016/j.jeca.2016.08.001

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