Economic growth volatility and resource curse: the role of financial development
We assess whether well-developed financial systems can moderate the positive association between oil volatility and growth volatility. To this end, we follow Beck et al’s proposition (2006) and distinguish between two different kinds of volatility, that is, oil terms of trade volatility, which is re...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Taylor's Business School, Taylor's University
2014
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| Online Access: | http://psasir.upm.edu.my/id/eprint/34391/1/Economic%20growth%20volatility%20and%20resource%20curse%20the%20role%20of%20financial%20development.pdf |
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| author | Moradbeigi, Maryam Law, Siong Hook |
| author_facet | Moradbeigi, Maryam Law, Siong Hook |
| author_sort | Moradbeigi, Maryam |
| collection | UPM |
| description | We assess whether well-developed financial systems can moderate the positive association between oil volatility and growth volatility. To this end, we follow Beck et al’s proposition (2006) and distinguish between two different kinds of volatility, that is, oil terms of trade volatility, which is referred to as real shock and inflation volatility, which is referred to as monetary shock. Using data from a sample of 63 oil-producing countries for the period of 1981-2010, the empirical analysis confirms a negative link between the volatility of oil terms of trade and growth. However, we also found weak evidence that financial development dampens the effect of oil terms of trade volatility. |
| first_indexed | 2024-03-06T08:28:52Z |
| format | Article |
| id | upm.eprints-34391 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T08:28:52Z |
| publishDate | 2014 |
| publisher | Taylor's Business School, Taylor's University |
| record_format | dspace |
| spelling | upm.eprints-343912016-09-15T09:19:42Z http://psasir.upm.edu.my/id/eprint/34391/ Economic growth volatility and resource curse: the role of financial development Moradbeigi, Maryam Law, Siong Hook We assess whether well-developed financial systems can moderate the positive association between oil volatility and growth volatility. To this end, we follow Beck et al’s proposition (2006) and distinguish between two different kinds of volatility, that is, oil terms of trade volatility, which is referred to as real shock and inflation volatility, which is referred to as monetary shock. Using data from a sample of 63 oil-producing countries for the period of 1981-2010, the empirical analysis confirms a negative link between the volatility of oil terms of trade and growth. However, we also found weak evidence that financial development dampens the effect of oil terms of trade volatility. Taylor's Business School, Taylor's University 2014 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/34391/1/Economic%20growth%20volatility%20and%20resource%20curse%20the%20role%20of%20financial%20development.pdf Moradbeigi, Maryam and Law, Siong Hook (2014) Economic growth volatility and resource curse: the role of financial development. Taylor's Business Review, 4 (2). pp. 147-164. ISSN 2232-0172 http://www.taylors.edu.my/tbr/archive/ |
| spellingShingle | Moradbeigi, Maryam Law, Siong Hook Economic growth volatility and resource curse: the role of financial development |
| title | Economic growth volatility and resource curse: the role of financial development |
| title_full | Economic growth volatility and resource curse: the role of financial development |
| title_fullStr | Economic growth volatility and resource curse: the role of financial development |
| title_full_unstemmed | Economic growth volatility and resource curse: the role of financial development |
| title_short | Economic growth volatility and resource curse: the role of financial development |
| title_sort | economic growth volatility and resource curse the role of financial development |
| url | http://psasir.upm.edu.my/id/eprint/34391/1/Economic%20growth%20volatility%20and%20resource%20curse%20the%20role%20of%20financial%20development.pdf |
| work_keys_str_mv | AT moradbeigimaryam economicgrowthvolatilityandresourcecursetheroleoffinancialdevelopment AT lawsionghook economicgrowthvolatilityandresourcecursetheroleoffinancialdevelopment |