Assessing Macroeconomic Volatility on Economic Growth: The Case of Sub-Saharan African Economies
Kiertisak Toh

As in most low-income countries, sub-Saharan African (SSA) economies tend to have a higher degree of macroeconomic volatility and are likely to be more vulnerable when exposed to external shocks. This paper uses the pre-global financial and economic crisis of 2008-2009 and the recovery since 2010 to create a pooled cross-sectional dataset to explore and assess macroeconomic volatility on economic growth, taken into account economic vulnerability and policy responses and resilience of SSA’s economies. A number of relevant macroeconomic variables are used to develop an index of macroeconomic resilience. The empirical results confirm that volatility in growth negatively affects growth of SSA’s economies. It supports the view that initial economic conditions before adverse external shocks matter and macroeconomic resilience is positively correlated with economic growth

Full Text: PDF     DOI: 10.15640/jeds.v4n3a1