Country size, economic performance and volatility - Archive ouverte HAL Access content directly
Journal Articles Revue de l'OFCE Year : 2019

Country size, economic performance and volatility

, (1)
1
Olfa Alouini
  • Function : Author
  • PersonId : 1114810

Abstract

What are the relationships between country size, economic growth and business cycle volatility? To investigate this question, we developed an originalcountry-size index with principal component analysis. Traditional analysis usually equates country size with population. Our methodology enables to simultaneously consider several factors constitutive of country size: population,GDP and arable land. These additional variables allow us to capture different components of the country size and to control for more than a demographic effect. Using a panel data set of 163 countries for 1960–2007, we find, contrary to Rose (2006), that country size has a significant and negative correlation with economic performance. Our results for output volatility extend the negative and significant relationship found by Furceri and Karras (2007). In addition, we present differentiated results for small and large countries, OECD members, eurozone countries and the so-called BRIC countries.
Fichier principal
Vignette du fichier
2019-alouini-country-size-economic-performance-and-volatility.pdf (381.22 Ko) Télécharger le fichier
Origin : Publisher files allowed on an open archive

Dates and versions

hal-03403618 , version 1 (26-10-2021)

Identifiers

Cite

Olfa Alouini, Paul Hubert. Country size, economic performance and volatility. Revue de l'OFCE, 2019, Varia, 4 (164), pp.139-163. ⟨10.3917/reof.164.0139⟩. ⟨hal-03403618⟩
19 View
13 Download

Altmetric

Share

Gmail Facebook Twitter LinkedIn More