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: A Journal of Contemporary Fiji, 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:	07 Oct 2018 22:21
Last Modified:	14 Jun 2022 22:09
URI:	https://repository.usp.ac.fj/id/eprint/11067

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