Article
2021
·
0 citations
The impact of fundamental uncertainties on economic growth
Abstract
This paper addresses the impact of fundamental (economic, political and geopolitical) uncertainties on GDP growth of the world's largest 20 economies (W-20) using the Cobb-Douglas total production function within the scope of the second-generation panel data methodology for 1990-2016. The aim of the paper is to explore whether these uncertainties lead to a contractionary impact on growth as suggested by the economic theory. The estimation results revealed that indeed this was the case. Our results also indicate that the global uncertainties led the economic growth rates of the selected countries to perform below their exact potential since the 2008 global economic crisis and to fail to attain an expected recovery during the process.
Keywords
economic
political and geopolitical uncertainty
sustainability of economic growth
second generation panel data analysis
WoS Categories
Economics
Sustainable Development Goals
Citation
- Journal
- ACTA OECONOMICA
- Year
- 2021
- Volume
- 71
- Issue
- 2
- Pages
- 213-234
- ISSN
- 0001-6373
- eISSN
- 1588-2659
- DOI
- 10.1556/032.2021.00011
- WoS UID
- WOS:000665499500003