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EXPORT INSTABILITY, INVESTMENT AND ECONOMIC GROWTH IN DEVELOPING COUNTRIES *
Author(s) -
LIM DAVID
Publication year - 1987
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/j.1467-8454.1987.tb00511.x
Subject(s) - investment (military) , citation , political science , economics , law , politics
There is no evidence to show that export instability encouraged the precautionary discounting of investment re turns and so slowed down the rate of investment and, therefore, econo mic growth for a group of forty-four developing countries over the pe riod 1967-81. Export instability did produce revenue instability whic h, in turn, brought about expenditure instability. However, the chain reaction went no further than this. Another important finding is tha t a positive and significant relationship between export instability and economic growth can be obtained simply by using an inappropriate measure of export instability. Copyright 1987 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia