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The Geography of Output Volatility
Adeel
Malik,
CSAE, University of Oxford
Jonathan R.W.
Temple,
Department of Economics, University of Bristol
WPS/2005-07
ABSTRACT: This paper examines the structural determinants of output volatility in developing
countries, and especially the roles of geography and institutions. We investigate the
volatility effects of market access, climate variability, the geographic predisposition to
trade, and various measures of institutional quality. We find an especially important
role for market access: remote countries are more likely to have undiversified exports
and to experience greater volatility in output growth. Our results are based on Bayesian
methods that allow us to address formally the problem of model uncertainty and to
examine robustness across a wide range of specifications.
SUGGESTED CITATION: Adeel Malik and Jonathan R.W. Temple,
"The Geography of Output Volatility"
(March 17, 2005).
The Centre for the Study of African Economies Working Paper Series.
Working Paper 241.
http://www.bepress.com/csae/paper241
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