EFFECTS OF MACROECONOMIC VOLATILITY ON ECONOMIC GROWTH: EVIDENCE FROM THE EUROPEAN UNION

Abstract

This paper investigates the relationship between macroeconomic volatility and economic growth for the period from 1995 to 2015. At the literature net economic growth effect of volatility is ambiguous. In this study, the factors which are gradually affecting the economic growth are estimated. This paper also contributes to the literature by focusing on how volatility affects economic growth and gives some policy implications. It is found that economic growth is lower in the presence of volatility at the European Union countries. This shows that smoother economic policy is crucial for the stable economic growth. Uncertainty effects economic growth negatively

Keywords

• Macroeconomic Volatility,Economic Growth,European Union,Panel Data

MAKROEKONOMİK VOLATİLİTENİN EKONOMİK BÜYÜME ETKİLERİ: AVRUPA BİRLİĞİ ÖRNEĞİ

Öz

Bu makale, 1995 ile 2015 arasındaki dönemde makroekonomik volatilite ile ekonomik büyüme arasındaki ilişkiyi araştırmaktadır. Literatürde volatilitenin net ekonomik büyüme etkisi belirsizdir. Bu çalışmada, ekonomik büyümeyi tedrici olarak etkileyen faktörler tahmin edilmektedir. Bu makale, ayrıca volatilitenin ekonomik büyümeyi nasıl etkilediğine odaklanarak literatüre katkıda bulunur ve bazı politika çıkarımları verir. Avrupa Birliği ülkelerinde volatilitenin varlığında ekonomik büyümenin daha düşük olduğu görülmektedir. Bu, daha istikrarlı ekonomi politikasının istikrarlı ekonomik büyüme için çok önemli olduğunu göstermektedir. Belirsizlik, ekonomik büyümeyi olumsuz etkilemektedir.

Anahtar Kelimeler

• Makroekonomik Volatilite,Ekonomik Büyüme,Avrupa Birliği,Panel Veri

Kaynakça

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