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Annals of Data Science
Published in:

12-05-2021

The Link Between Output Growth and Output Growth Volatility: Barbados

Author: Terence D. Agbeyegbe

Published in: Annals of Data Science | Issue 3/2023

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Abstract

This article investigates the effect of output volatility on output growth in Barbados, a small island developing state located in the Caribbean, based on data from 1976 through 2018. I conduct the analysis using the Stochastic Volatility in Mean model with time-varying parameters. The evidence suggests that output growth volatility, measured by stochastic volatility, negatively links with output growth at the aggregate level. I also examine disaggregate output data in order to understand this link better. The sectoral evidence suggests a positive link for services, a negative link for manufacturing, and a weak link for agriculture and the industrial sectors.
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Footnotes
1
Some suggest that changes involving the decline in volatility can are due to better macroeconomic policies, economic structure changes, and good luck.
 
2
The data for 2003 was missing and supplemented by data from the [64]. The data that support the findings of this study are available from the author.
 
3
The code, written in MATLAB, to fit the model is available to the public and is available at Joshua Chan’s website (http://​joshuachan.​org/​code.​html).
 
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Metadata
Title
The Link Between Output Growth and Output Growth Volatility: Barbados
Author
Terence D. Agbeyegbe
Publication date
12-05-2021
Publisher
Springer Berlin Heidelberg
Published in
Annals of Data Science / Issue 3/2023
Print ISSN: 2198-5804
Electronic ISSN: 2198-5812
DOI
https://doi.org/10.1007/s40745-021-00331-2

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