Is Economic Volatility Detrimental to Global Sustainability?

• Tác giả: Yongfu Huang
• Ngôn ngữ: eng
• Ký hiệu phân loại: 330 Economics
• Thông tin xuất bản: Oxford University Press on behalf of the World Bank, 2013
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 311134
• Chủ đề: 1. economic downturn; 2. Economic Volatility; 3. financial crisis; 4. financial development; 5. future growth

Tóm tắt

In a dynamic panel data model allowing for error cross-section dependence, output volatility is found to impede sustainable development. Through a financial development channel (liquidity liability ratio), output volatility exerts a significant effect on depletion of natural resources, a key component of sustainability. Low-income countries, low energy-intensity countries, and low trade-share countries tend to be especially vulnerable to macroeconomic volatility and shocks. The findings highlight the interaction between global financial markets and the wider economy as a key factor influencing sustainable development, with important implications for macroeconomic and environmental policies in an integrated global green economy.