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Macroeconomic volatility, trade and financial liberalization in Africa

journal contribution
posted on 06.12.2017, 00:00 authored by Abdullahi AhmedAbdullahi Ahmed, S Suardi
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.

Funding

Category 1 - Australian Competitive Grants (this includes ARC, NHMRC)

History

Volume

37

Issue

10

Start Page

1623

End Page

1636

Number of Pages

14

ISSN

0305-750X

Location

United Kingdom

Publisher

Pergamon

Language

en-aus

Peer Reviewed

Yes

Open Access

No

External Author Affiliations

La Trobe University; Victoria University of Technology;

Era Eligible

Yes

Journal

World development.