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Growth volatility and trade: evidence from the 1967-1975 closure of the Suez Canal

Rasyad Parinduri ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the effects of trade on economic growth and growth volatility. Using the 1967-1975 closure of the Suez Canal as an instrument for trade, I find that trade leads to higher economic growth, and lower probability of recession or economic slowdown. There is no evidence that trade reduces growth volatility, however.

Keywords: economic growth; volatility; trade; IV method (search for similar items in EconPapers)
JEL-codes: F13 F43 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fdg
Date: 2012
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