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EXPORT INSTABILITY AND ECONOMIC GROWTH *
Author(s) -
Kenen Peter B.,
Voivodas Constantine S.
Publication year - 1972
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/j.1467-6435.1972.tb01082.x
Subject(s) - instability , work (physics) , investment (military) , economics , economic stability , index (typography) , sample (material) , econometrics , developing country , macroeconomics , political science , economic growth , computer science , physics , politics , thermodynamics , world wide web , mechanics , law
SUMMARY Does export instability interfere with economic development? Work by M c B ean answers in the negative. He finds no systematic relationship between instability and economic growth. This paper asks three questions about M c B ean 's work: (1) Has he measured the relevant variables appropriately? (2) Were special factors at work in the period he studied (1950‐58) ? (3) Was his sample of countries representative? It presents a broader statistical analysis, using a different index of instability, two decades of data, and more countries. In general, the findings do not contradict M c B ean . But calculations using different time periods (1950‐66 and 1956‐67) do produce some evidence of interference. Furthermore, the paper finds one new relationship—a strong inverse connection between instability and the level of investment in developing countries.