TY - JOUR
T1 - Trading partner volatility and the ability for a country to cope: A panel GMM model, 1970-2005
AU - Edwards, Jeffrey
PY - 2009/7/1
Y1 - 2009/7/1
N2 - This paper explores how six indicators of domestic and global development, influence the dissemination of volatility in trading partner growth rates. Using a dynamic panel, fixedeffects, system GMM methodology, I find that for the most part, developing countries can indeed cushion their economies from fluctuations in trading partner growth by increasing depth and diversification both domestically and globally. On the other hand, I also find that while developed countries seem to already be insulated from such fluctuations, increases in the same variables will actually increase a country's susceptibility to trading partner volatility.
AB - This paper explores how six indicators of domestic and global development, influence the dissemination of volatility in trading partner growth rates. Using a dynamic panel, fixedeffects, system GMM methodology, I find that for the most part, developing countries can indeed cushion their economies from fluctuations in trading partner growth by increasing depth and diversification both domestically and globally. On the other hand, I also find that while developed countries seem to already be insulated from such fluctuations, increases in the same variables will actually increase a country's susceptibility to trading partner volatility.
KW - Development
KW - Diversification
KW - GMM
KW - Volatility
UR - https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=77956770881&origin=inward
UR - https://www.scopus.com/inward/citedby.uri?partnerID=HzOxMe3b&scp=77956770881&origin=inward
M3 - Article
SN - 1578-4487
VL - 9
SP - 5
EP - 20
JO - Applied Econometrics and International Development
JF - Applied Econometrics and International Development
IS - 2
ER -