Total factor productivity and macroeconomic instability

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Berument H., Dinçer N. N., Mustafaoglu Z.

JOURNAL OF INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT, vol.20, no.5, pp.605-629, 2011 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 20 Issue: 5
  • Publication Date: 2011
  • Doi Number: 10.1080/09638190903365930
  • Journal Name: JOURNAL OF INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.605-629
  • Keywords: macroeconomic instability, TFP growth, VAR-GARCH models, INFLATION UNCERTAINTY, TIME-SERIES, GROWTH, INVESTMENT, EVOLUTION, OPENNESS, ECONOMY, TRADE
  • TED University Affiliated: No

Abstract

Total factor productivity (TFP) is an important component of growth for most countries. This article assesses the role of macroeconomic instability on TFP growth. We consider volatility in inflation, openness of an economy and financial market deepness as measures of macroeconomic instability. Empirical evidence provided from Turkey suggests that volatility of openness and financial market deepness reduce TFP growth, whereas volatility of inflation increases TFP growth.