Does uncertainty affect economic growth? an empirical analysis

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Abstract

This paper investigates the effect of uncertainty on economic growth. We construct measures of export uncertainty, government policy uncertainty and price uncertainty to augment a growth model, and using econometric techniques we test for robustness of the effects of these measure on economic growth in a cross-section of 138 developing and developed economies during 1970-1995. The result clearly shows a robust and negative effect of uncertainty on economic growth. These results underline the importance of export stability and policy credibility.
Original languageEnglish
Publishers.n.
Number of pages20
Publication statusPublished - 1999

Keywords

  • 83.33 economische fluctuaties
  • Economische groei, Onzekerheid, Groeimodellen

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