Macroeconomic Volatility, Trade and Financial Liberalization in Africa

Abdullahi D. Ahmed and Sandy Suardi ()

World Development, 2009, vol. 37, issue 10, pages 1623-1636

Abstract: Summary This paper examines the effects of financial and trade liberalization on growth volatility of real output and consumption in Africa. Our results suggest trade liberalization is associated with greater output and consumption growth volatility while financial liberalization increases the efficacy of consumption smoothing and stabilizes income and consumption growth. In addition, we find financial market depth and institutional quality operate jointly with trade and financial openness to reduce volatility in output and consumption growth. There is also evidence that good institutions which foster low inflation levels and volatility promote consumption and output growth stability.

Keywords: macroeconomic; volatility; trade; and; financial; liberalization; Sub-Saharan; Africa; Bostwana; financial; development; institutions (search for similar items in EconPapers)
Date: 2009

Downloads: (external link)
http://www.sciencedirect.com/science/article/B6VC6 ... fc578582e22b9f4320b6
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:eee:wdevel:v:37:y:2009:i:10:p:1623-1636

Access Statistics for this article

World Development is edited by O. T. Coomes

More articles in World Development from Elsevier
Series data maintained by Heidi Boesdal ().