IDEAS home Printed from https://ideas.repec.org/a/taf/specan/v11y2016i1p27-45.html
   My bibliography  Save this article

On the Link between Volatility and Growth: A Spatial Econometrics Approach

Author

Listed:
  • Girum Dagnachew Abate

Abstract

This paper examines the link between macro volatility and economic growth in the lens of spatial econometrics. We present an unconstrained spatial Durbin Ramey-Ramey model. We test the extended model in a panel of 78 countries to investigate all the possible dimensions along which spatial interactions can affect the link between macro volatility and growth. In contrast to previous literature, we split the effects of volatility on growth into direct and indirect effects using partial derivative impacts approach. We found that both the direct and indirect effects of volatility on growth are negative; the latter effect suggesting the transmission of volatility shocks to neighbouring countries. Growth rates observed in neighbouring countries has a positive effect on growth rate of a particular country.

Suggested Citation

  • Girum Dagnachew Abate, 2016. "On the Link between Volatility and Growth: A Spatial Econometrics Approach," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(1), pages 27-45, March.
    • Handle: RePEc:taf:specan:v:11:y:2016:i:1:p:27-45
    DOI: 10.1080/17421772.2015.1045021
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17421772.2015.1045021
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17421772.2015.1045021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mª Luz García de la Vega & José A. Herce, "undated". "Integration and Growth in the EU. The Role of Trade," Working Papers 2000-20, FEDEA.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiurong Chen & Aimin Hao & Yali Li, 2020. "The impact of financial contagion on real economy-An empirical research based on combination of complex network technology and spatial econometrics model," PLOS ONE, Public Library of Science, vol. 15(3), pages 1-20, March.
    2. Mo, Guoli & Tan, Chunzhi & Zhang, Weiguo & Liu, Fang, 2019. "International portfolio of stock indices with spatiotemporal correlations: Can investors still benefit from portfolio, when and where?," The North American Journal of Economics and Finance, Elsevier, vol. 47(C), pages 168-183.
    3. Marbuah, George & Amuakwa-Mensah, Franklin, 2017. "Spatial analysis of emissions in Sweden," Energy Economics, Elsevier, vol. 68(C), pages 383-394.
    4. O'Connor, Sean & Doyle, Eleanor & Doran, Justin, 2018. "Diversity, employment growth and spatial spillovers amongst Irish regions," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 260-267.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. María García-Vega & José A. Herce, "undated". "Interdependent Growth in the EU: The Role of Trade," Working Papers 2002-08, FEDEA.
    2. Getachew, Asgedom Tessema & Tadele, Ferede & Arega, Hailu & Fantu, Guta, 2005. "The Impact of Regional Economic Cooperation on the Ethiopian Manufacturing Sector: the Case of Common Market for Southern and Eastern Free Trade Area (COMESA-FTA)," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 10(1), pages 1-98, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:specan:v:11:y:2016:i:1:p:27-45. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RSEA20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.