Is Growth Exogenous? Evidence from the 1970s and 1980s

Applied Economics, Vol. 42, 2010

33 Pages Posted: 28 Oct 2019

See all articles by Alessandro Rebucci

Alessandro Rebucci

Johns Hopkins University - Carey Business School; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Date Written: August 2006

Abstract

This article assesses the role of external and policy factors for growth variability. The mean group estimator is used to estimate a vector autoregressive system on a panel data set of eighteen developing economies from 1965 to 1992. The main findings are that (i) temporary external shocks are an important determinant of medium to long-run growth variability (ii) high inflation countries are more vulnerable to external shocks than others. This evidence is supportive of the conventional view that macro-economic stability is conducive to growth, and casts doubts on the idea that the growth process might be largely exogenous.

Suggested Citation

Rebucci, Alessandro, Is Growth Exogenous? Evidence from the 1970s and 1980s (August 2006). Applied Economics, Vol. 42, 2010, Available at SSRN: https://ssrn.com/abstract=3407717

Alessandro Rebucci (Contact Author)

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States

HOME PAGE: http://carey.jhu.edu/faculty-research/faculty-directory/alessandro-rebucci-phd

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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