The Determinants of Growth Rate Volatility in European Regions
Davide Fiaschi (),
Lisa Gianmoena and
Angela Parenti ()
Discussion Papers from Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy
In this paper we analyze the determinants of growth rate volatility (GRV) of per capita GDP of 257 regions belongs to 25 EU coun- tries in the period 1992 ? 2008. Among the determinants at regional level the growth rate of employment has a negative impact on GRV, while investment rate, the shares of agriculture, construction, finance and manufacturing, the share of household expenditure on GDP (the latter only for GRV due to positive shocks) have a positive impact; among the determinants at country level, government expenditure has a negative impact on GRV, while share of credit to private sector on GDP and inflation have a positive impact on GRV; finally, among the aggregate determinants, the volatility of the oil price has an asymmet- ric effect on GRV by increasing the volatility generated by negative shocks and reducing the volatility in case of negative shocks, while the participation to EMU only reduces the volatility due to positive shocks.
Keywords: Asymmetric fluctuation; spatial panel model; generalized spatial two stage least squares; output composition; government ex- penditure. (search for similar items in EconPapers)
JEL-codes: C23 E32 N14 O40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-gro and nep-mac
Note: ISSN 2039-1854
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Persistent link: https://EconPapers.repec.org/RePEc:pie:dsedps:2013/170
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