Do sovereign wealth funds dampen the negative effects of commodity price volatility ?
Joint Authors
Source
Economic Research Forum : Working Paper Series
Issue
Vol. 2017, Issue 1075-1171 (31 Dec. 2017), pp.1-19, 19 p.
Publisher
Economic Research Forum for the Arab Countries Iran and Turkey
Publication Date
2017-12-31
Country of Publication
Egypt
No. of Pages
19
Main Subjects
Topics
Abstract EN
This paper studies the impact of commodity terms of trade (CToT) volatility on economic growth (and its sources) in a sample of 69 commodity-dependent countries, and assesses the role of Sovereign Wealth Funds (SWFs) and quality of institutions in their long-term growth performance.
Using annual data over the period 1981–2014, we employ the Cross-Sectionally augmented Autoregressive Distributive Lag (CS-ARDL) methodology for estimation to account for cross-country heterogeneity, cross-sectional dependence, and feedback effects.
We find that while CToT volatility exerts a negative impact on economic growth (operating through lower accumulation of physical capital and lower TFP), the average impact is dampened if a country has a SWF and better institutional quality (hence a more stable government expenditure).
American Psychological Association (APA)
Mohaddes, Kamiar& Raissi, Mahdi. 2017. Do sovereign wealth funds dampen the negative effects of commodity price volatility ?. Economic Research Forum : Working Paper Series،Vol. 2017, no. 1075-1171, pp.1-19.
https://search.emarefa.net/detail/BIM-784489
Modern Language Association (MLA)
Mohaddes, Kamiar& Raissi, Mahdi. Do sovereign wealth funds dampen the negative effects of commodity price volatility ?. Economic Research Forum : Working Paper Series No. 1075-1171 (Dec. 2017), pp.1-19.
https://search.emarefa.net/detail/BIM-784489
American Medical Association (AMA)
Mohaddes, Kamiar& Raissi, Mahdi. Do sovereign wealth funds dampen the negative effects of commodity price volatility ?. Economic Research Forum : Working Paper Series. 2017. Vol. 2017, no. 1075-1171, pp.1-19.
https://search.emarefa.net/detail/BIM-784489
Data Type
Journal Articles
Language
English
Notes
Includes appendices : p. 16-19
Record ID
BIM-784489