Is Economic Volatility Detrimental to Global Sustainability?
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.
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| Main Author: | |
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| Format: | Journal Article biblioteca |
| Language: | en_US |
| Published: |
Oxford University Press on behalf of the World Bank
2012-01-18
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| Subjects: | economic downturn, Economic Volatility, financial crisis, financial development, future growth, global financial markets, growth rate, income, international trade, liquidity, Low-income countries, natural resource, natural resources, output, private capital, private capital flows, savings, stock markets, sustainable development, world economy, |
| Online Access: | http://hdl.handle.net/10986/15343 |
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