Output variability and growth rate of output in South Korea

Joseph Macri, Dipendra Sinha

Research output: Contribution to journalArticlepeer-review

Abstract

We examine the relationship between output variability and the growth rate for South Korea by using quarterly data. We use two data series: GDP and the index of industrial production. We test for stationarity using Ng-Perron unit root tests. We find that the growth rate of GDP is non-stationary but the growth rate of industrial production is stationary. Thus, we use the ARCH-M model for the growth of industrial production. A number of specifications of the ARCH-M model are used. In all cases, the results show that the output variability has a positive but insignificant effect on the growth rate of output.
Original languageEnglish
Pages (from-to)163-172
Number of pages10
JournalAsian-African Journal of Economics and Econometrics
Volume6
Publication statusPublished - 2006

Keywords

  • economic growth
  • volatility
  • variability
  • business cycles
  • GARCH models

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