The effect of output growth volatility on output growth: empirical evidence from Turkey. Issue 6 (30th March 2019)

• Record Type: Journal Article
• Authors: Ülke, Volkan; Varlik, Serdar; Berument, M. Hakan
• Is Part Of: Applied economics letters. Volume 26:Issue 6(2019)
• Page Start: 522
• Page End: 531
• Publication Date: 2019-03-30
• Subjects: Output growth volatility -- output growth -- TVP-SVM; E23 -- E10 -- O40 -- C52; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2018.1488035
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: This article assesses the effect of output growth volatility on output growth within a stochastic-volatility-in-mean model with a time-varying framework for an open small economy: Turkey. Until now, the empirical evidence on industrial production mainly reveals that this relationship is negative. However, in further examining different sectors and sub-sectors of industrial production, we find the sign of the relationship changes depending on the sector. Moreover, there is limited evidence that the sign of the relationship changes over time. Thus, the evidence reveals that the nature of the output growth volatility–output growth relationship is not uniform across sectors.