Export instability and the domestic economy: questions of causality

Love, J. (1992) Export instability and the domestic economy: questions of causality. Journal of Development Studies, 28(4), pp. 735-742. (doi:10.1080/00220389208422256)

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Abstract

The conventional view concerning the impact of export instability on the domestic economies of developing countries is one of pessimism. Export instability is thought to adversely affect the short‐run stability and longer‐run growth of income. Empirical evidence on these matters is, however, inconclusive. This article applies a Granger/Sims reduced form approach to examining whether export instability generates short‐run instability in domestic income. For each of a sample of 20 trade‐dependent countries the results obtained strongly support the contention that export instability induces short‐run macroeconomic instability.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Love, Professor James
Authors: Love, J.
College/School:College of Social Sciences > Adam Smith Business School
Journal Name:Journal of Development Studies
Publisher:Routledge
ISSN:0022-0388
ISSN (Online):1743-9140

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