publication . Other literature type . Report . Preprint . Article . 1991

Policy Uncertainty, Persistence and Growth

Joshua Aizenman; Nancy P. Marion;
Open Access
  • Published: 01 Sep 1991
  • Publisher: Wiley
Abstract
This paper explores links between policy uncertainty and growth. It provides evidence on the correlation between policy uncertainty and per capita real GDP for 46 developing countries over the 1970-85 period. Cross-section regressions on growth suggest that after accounting for standard variables from the endogenous growth literature, policy uncertainty and growth are correlated. The importance of the correlation and even its sign depend on the particular policy and on the geographical region examined. One channel through which policy uncertainty may affect growth is the investment channel. Using an endogenous growth model where domestic investment is characteri...
Subjects
free text keywords: Geography, Planning and Development, Development

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