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The International Volatility of Growth

Author

Listed:
  • Alaistar Chan

    (UWA Business School, The University of Western Australia)

  • Kenneth W. Clements

    (UWA Business School, The University of Western Australia)

Abstract

Growth in the world economy is not shared equally among all countries, with some growing faster, some slower and some not at all. The cross-country distribution of growth is a useful tool for analysing the inequality of growth. The appropriately-weighted first moment of this distribution is world growth, while the second measures cross-country volatility. This paper introduces a methodology to examine the cross-country distribution of growth, and the components of its volatility. Using data from the Penn World Table, we find countries within geographic regions are seeing a harmonisation of growth, but between regions there is increasing dispersion.

Suggested Citation

  • Alaistar Chan & Kenneth W. Clements, 2007. "The International Volatility of Growth," Economics Discussion / Working Papers 07-10, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:07-10
    as

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    File URL: https://ecompapers.biz.uwa.edu.au/paper/PDF%20of%20Discussion%20Papers/2007/07_10_Clements.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Chen, Mei-Hsiu, 2010. "Understanding world metals prices--Returns, volatility and diversification," Resources Policy, Elsevier, vol. 35(3), pages 127-140, September.
    2. Mei-Hsiu Chen, 2009. "UNDERSTANDING WORLD COMMODITY PRICES Returns, Volatility and Diversification," Economics Discussion / Working Papers 09-03, The University of Western Australia, Department of Economics.

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