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Determinants of growth volatility in small island developing states: empirical evidence from a panel data analysis

Chen, Hong and Singh, Baljeet and Kumar, Sanjesh and Prasad, Biman C. (2018) Determinants of growth volatility in small island developing states: empirical evidence from a panel data analysis. Fijian Studies, 16 (1). pp. 3-23. ISSN 1728-7456

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    Abstract

    This paper examines determinants of growth volatility in Small Island Developing States (SIDS) using a balanced panel of 24 SIDS over 1995-2012. It employs the Hodrick-Prescott filter and quantifies growth volatility by the rolling standard deviation of the cyclical component of economic growth. Empirical analysis adopts a reduced form approach and the difference and system Generalized Method of Moments (GMM) estimator. It is found that tourism dependency and inflation volatility have positive impacts on growth volatility, while terms of trade, product diversification and migration are negatively associated with growth volatility. The findings have important policy implications on mitigating growth volatility in SIDS.

    Item Type: Journal Article
    Subjects: H Social Sciences > HD Industries. Land use. Labor
    Divisions: Faculty of Business and Economics (FBE) > School of Economics
    Depositing User: Sanjesh Kumar
    Date Deposited: 08 Oct 2018 10:21
    Last Modified: 08 Oct 2018 10:21
    URI: http://repository.usp.ac.fj/id/eprint/11067
    UNSPECIFIED

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