Reexamining the link between instability and growth in Latin America: a dynamic panel data estimation using K-median clusters



Título del documento: Reexamining the link between instability and growth in Latin America: a dynamic panel data estimation using K-median clusters
Revista: Latin american journal of economics
Base de datos: CLASE
Número de sistema: 000418678
ISSN: 0719-0425
Autores: 1
1
1
Instituciones: 1Universidad Nacional del Sur, Departamento de Economía, Bahía Blanca, Buenos Aires. Argentina
Año:
Periodo: May
Volumen: 52
Número: 1
Paginación: 1-23
País: Chile
Idioma: Inglés
Tipo de documento: Artículo
Enfoque: Aplicado
Resumen en inglés We estimate a dynamic panel data model to assess the relationship between different levels of instability—proxied by growth volatility and inflation— and growth in Latin America from 1960 to 2011. Outlying observations could be mistakenly treated as thresholds or regime switch. Hence we use k-median clustering to mitigate the outlier problem and properly identify "scenarios" of instability. Our key findings are that while high inflation is harmful, low inflation is in fact positively related to growth. Volatility is also found to be significant and negative, but with no differential effect— between low and high levels—on growth
Disciplinas: Economía
Palabras clave: Empresas,
Condiciones económicas,
Econometría,
Inestabilidad,
Crecimiento económico,
Volatilidad,
Inflación,
Datos de panel,
Clusters,
América Latina
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