Publication: Is Economic Volatility Detrimental to Global Sustainability?
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Published
2012-01-18
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1564-698X
Date
2013-08-26
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In a dynamic panel data model allowing for error cross-section dependence, output volatility is found to impede sustainable development. Through a financial development channel (liquidity liability ratio), output volatility exerts a significant effect on depletion of natural resources, a key component of sustainability. Low-income countries, low energy-intensity countries, and low trade-share countries tend to be especially vulnerable to macroeconomic volatility and shocks. The findings highlight the interaction between global financial markets and the wider economy as a key factor influencing sustainable development, with important implications for macroeconomic and environmental policies in an integrated global green economy.
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“Huang, Yongfu. 2012. Is Economic Volatility Detrimental to Global Sustainability?. World Bank Economic Review. © World Bank. http://hdl.handle.net/10986/15343 License: CC BY-NC-ND 3.0 IGO.”
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World Bank Economic Review
1564-698X
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