Is Economic Volatility Detrimental to Global Sustainability?

Huang, Yongfu

Oxford University Press on behalf of the World Bank

关键词: economic downturn;    Economic Volatility;    financial crisis;    financial development;    future growth;   

DOI  :  10.1093/wber/lhr042

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

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.