Trading partner volatility and the ability for a country to cope: A panel GMM model, 1970-2005

• Jeffrey A. Edwards ^[1]
  1. [1] North Carolina A & T State University
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 9, Nº. 2, 2009, págs. 5-20
• Idioma: inglés
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• Resumen

  • 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.