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

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  • Parinduri, Rasyad

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.

Suggested Citation

  • Parinduri, Rasyad, 2012. "Growth volatility and trade: evidence from the 1967-1975 closure of the Suez Canal," MPRA Paper 39040, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:39040
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    File URL: https://mpra.ub.uni-muenchen.de/39040/1/MPRA_paper_39040.pdf
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    References listed on IDEAS

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    Cited by:

    1. Francesco Caselli & Miklós Koren & Milan Lisicky & Silvana Tenreyro, 2020. "Diversification Through Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(1), pages 449-502.
    2. Bacchetta, Marc & Bekkers, Eddy & Piermartini, Roberta & Rubinova, Stela & Stolzenburg, Victor & Xu, Ankai, 2021. "COVID-19 and global value chains: A discussion of arguments on value chain organization and the role of the WTO," WTO Staff Working Papers ERSD-2021-3, World Trade Organization (WTO), Economic Research and Statistics Division.
    3. Barinova, V. A. (Баринова, В.) & Eremkin, V. A. (Еремкин, В.) & Lanshina, T. A. (Ланьшина, Т.) & Pleskachev, Yuriy Andreevich (Плескачев, Юрий Андреевич), 2016. "Restrictions on the Use of Effective (Incentive) Contracts in the Public Sector and Public Service [Ограничения Применения Эффективных (Стимулирующих) Контрактов В Бюджетном Секторе И На Государств," Working Papers 964, Russian Presidential Academy of National Economy and Public Administration.

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    More about this item

    Keywords

    economic growth; volatility; trade; IV method;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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