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Growth, volatility and education: panel evidence from developing countries

The investigation of the growth-volatility link is an important one in empirical macroeconomics. There is no empirical evidence supporting the predictions of recent theoretical models that incorporate and explicitly recognize the role of human capital in this link. The objective of the study is to e...

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Main Authors: Mhd Bani, Nor Yasmin, Kedir, Abbi Mamo
Format: Article
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2017
Online Access:http://psasir.upm.edu.my/id/eprint/56376/1/%2812%29-Paper%2012%20Final-IJEM%2011%281%29%2C2017_Growth%2C%20Volatility....pdf
http://psasir.upm.edu.my/id/eprint/56376/
http://172.17.31.1/ijem/vol11no1/(12)-Paper%2012%20Final-IJEM%2011(1),2017_Growth,%20Volatility....pdf
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spelling my.upm.eprints.563762017-07-31T09:12:45Z http://psasir.upm.edu.my/id/eprint/56376/ Growth, volatility and education: panel evidence from developing countries Mhd Bani, Nor Yasmin Kedir, Abbi Mamo The investigation of the growth-volatility link is an important one in empirical macroeconomics. There is no empirical evidence supporting the predictions of recent theoretical models that incorporate and explicitly recognize the role of human capital in this link. The objective of the study is to examine whether the significance of volatility-growth relationship varies according to the average years of education. Using a panel data, we empirically show how the detrimental effect of output volatility on growth is diluted by education. The main contribution of our work is that while the level of volatility negatively affects growth, the effect is mediated via education. This is true even for countries with low as well as moderately high levels of volatility. This finding is consistent with Canton’s (2000) theoretical work. We also provide robustness checks and policy implications of our finding. Faculty of Economics and Management, Universiti Putra Malaysia 2017 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/56376/1/%2812%29-Paper%2012%20Final-IJEM%2011%281%29%2C2017_Growth%2C%20Volatility....pdf Mhd Bani, Nor Yasmin and Kedir, Abbi Mamo (2017) Growth, volatility and education: panel evidence from developing countries. International Journal of Economics and Management, 11 (1). pp. 225-235. ISSN 1823-836X http://172.17.31.1/ijem/vol11no1/(12)-Paper%2012%20Final-IJEM%2011(1),2017_Growth,%20Volatility....pdf
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description The investigation of the growth-volatility link is an important one in empirical macroeconomics. There is no empirical evidence supporting the predictions of recent theoretical models that incorporate and explicitly recognize the role of human capital in this link. The objective of the study is to examine whether the significance of volatility-growth relationship varies according to the average years of education. Using a panel data, we empirically show how the detrimental effect of output volatility on growth is diluted by education. The main contribution of our work is that while the level of volatility negatively affects growth, the effect is mediated via education. This is true even for countries with low as well as moderately high levels of volatility. This finding is consistent with Canton’s (2000) theoretical work. We also provide robustness checks and policy implications of our finding.
format Article
author Mhd Bani, Nor Yasmin
Kedir, Abbi Mamo
spellingShingle Mhd Bani, Nor Yasmin
Kedir, Abbi Mamo
Growth, volatility and education: panel evidence from developing countries
author_facet Mhd Bani, Nor Yasmin
Kedir, Abbi Mamo
author_sort Mhd Bani, Nor Yasmin
title Growth, volatility and education: panel evidence from developing countries
title_short Growth, volatility and education: panel evidence from developing countries
title_full Growth, volatility and education: panel evidence from developing countries
title_fullStr Growth, volatility and education: panel evidence from developing countries
title_full_unstemmed Growth, volatility and education: panel evidence from developing countries
title_sort growth, volatility and education: panel evidence from developing countries
publisher Faculty of Economics and Management, Universiti Putra Malaysia
publishDate 2017
url http://psasir.upm.edu.my/id/eprint/56376/1/%2812%29-Paper%2012%20Final-IJEM%2011%281%29%2C2017_Growth%2C%20Volatility....pdf
http://psasir.upm.edu.my/id/eprint/56376/
http://172.17.31.1/ijem/vol11no1/(12)-Paper%2012%20Final-IJEM%2011(1),2017_Growth,%20Volatility....pdf
_version_ 1643836172755009536
score 13.211869

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