Effects of Terms of Trade and its Volatility on Economic Growth: A Cross Country Empirical Investigation

Syed Tehseen Jawaid and Waheed Abdul

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines the effects of terms of trade and its volatility on economic growth for a sample of 94 developed and developing countries, using five year average annual data from 2004 to 2008. The cross country ordinary least square estimation results indicate significant positive effect of terms of trade on economic growth. Furthermore, volatility of terms of trade has significant positive effect on economic growth. To test the robustness of initial results, sensitivity analysis has been performed using different additional variables, sample size and various proxies of volatility variable. The initial results were found robust despite the inclusion of various variables in the basic model and use of various proxies for volatility of terms of trade.

Keywords: Terms of trade; Volatility; Economic Growth (search for similar items in EconPapers)
JEL-codes: D80 F13 F42 (search for similar items in EconPapers)
Date: 2011-05-07
New Economics Papers: this item is included in nep-fdg and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/32694/1/MPRA_paper_32694.pdf original version (application/pdf)

Related works:
Journal Article: Effects of Terms of Trade and its Volatility on Economic Growth: A Cross Country Empirical Investigation (2011)
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: https://EconPapers.repec.org/RePEc:pra:mprapa:32694

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().