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Macroeconomic volatility, trade and financial liberalization in Africa

Ahmed, Abdullahi D and Suardi, S (2009) Macroeconomic volatility, trade and financial liberalization in Africa. World Development, 37 (10). pp. 1623-1636. ISSN 0305-750X

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Abstract

This paper examines the effects of financial and trade liberalization on growth volatility of real output and consumption in Africa. Our results suggest trade liberalization is associated with greater output and consumption growth volatility while financial liberalization increases the efficacy of consumption smoothing and stabilizes income and consumption growth. In addition, we find financial market depth and institutional quality operate jointly with trade and financial openness to reduce volatility in output and consumption growth. There is also evidence that good institutions which foster low inflation levels and volatility promote consumption and output growth stability.

Item Type: Article
Uncontrolled Keywords: ResPubID17913. macroeconomic volatility, trade and financial liberalisation, trade liberalisation, financial liberalisation, financial growth, financial markets, consumption, Sub-Saharan Africa, fiscal policy, inflation, financial development, Botswana
Subjects: Faculty/School/Research Centre/Department > Centre for Strategic Economic Studies (CSES)
FOR Classification > 1402 Applied Economics
SEO Classification > 9101 Macroeconomics
Depositing User: VUIR
Date Deposited: 24 Aug 2011 01:47
Last Modified: 24 Aug 2011 01:47
URI: http://vuir.vu.edu.au/id/eprint/4114
DOI: 10.1016/j.worlddev.2009.03.009
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Citations in Scopus: 10 - View on Scopus

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