Taming Volatility : Fiscal Policy and Financial Development for Growth in the Eastern Caribbean
The report is structured in four chapters that outline the main sources of volatility in the region and suggest ways to mitigate the impacts of that volatility on growth. Chapter one presents stylized facts associated with the growth performance of...
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| Format: | Report |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/06/26539208/taming-volatility-fiscal-policy-financial-development-growth-eastern-caribbean http://hdl.handle.net/10986/24925 |
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okr-10986-249252021-06-14T10:15:54Z Taming Volatility : Fiscal Policy and Financial Development for Growth in the Eastern Caribbean Carneiro, Francisco Galrao Odawara, Rei regional integration fiscal policy economic growth volatility pro-cyclical fiscal policy financial development The report is structured in four chapters that outline the main sources of volatility in the region and suggest ways to mitigate the impacts of that volatility on growth. Chapter one presents stylized facts associated with the growth performance of the Eastern Caribbean over the last 40 years. It contrasts the growth performance of the OECS with the rest of the Latin America region and shows that the two groups of countries have shown significant heterogeneity over the business cycle. The chapter also highlights some of the factors that might be responsible for the volatility of growth in the OECS, including the region’s exposure to natural disasters, high debt, and adverse developments in the financial sector. Chapter two provides new evidence on output volatility and the cyclicality of fiscal policy in the OECS and discusses why countries are better off avoiding a pro-cyclical fiscal policy stance. Chapter three assesses the level of financial development in the region as well as the relationship between financial development, growth, and volatility. The chapter also explores critical policy options to strengthen financial development in the OECS. Chapter four assesses empirically the combined effects of terms of trade volatility, fiscal policy (pro) cyclicality, and financial development on growth in the OECS and other countries using two complementary modeling approaches. First, through an econometric model using panel data for 175 countries over the period 1980-2010. Second, by using impulse-response analysis based on a structural model of the business cycle in the OECS region. 2016-08-24T17:09:46Z 2016-08-24T17:09:46Z 2016-06 Report http://documents.worldbank.org/curated/en/2016/06/26539208/taming-volatility-fiscal-policy-financial-development-growth-eastern-caribbean http://hdl.handle.net/10986/24925 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Country Economic Memorandum Economic & Sector Work Latin America & Caribbean Caribbean |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
regional integration fiscal policy economic growth volatility pro-cyclical fiscal policy financial development |
| spellingShingle |
regional integration fiscal policy economic growth volatility pro-cyclical fiscal policy financial development Carneiro, Francisco Galrao Odawara, Rei Taming Volatility : Fiscal Policy and Financial Development for Growth in the Eastern Caribbean |
| geographic_facet |
Latin America & Caribbean Caribbean |
| description |
The report is structured in four
chapters that outline the main sources of volatility in the
region and suggest ways to mitigate the impacts of that
volatility on growth. Chapter one presents stylized facts
associated with the growth performance of the Eastern
Caribbean over the last 40 years. It contrasts the growth
performance of the OECS with the rest of the Latin America
region and shows that the two groups of countries have shown
significant heterogeneity over the business cycle. The
chapter also highlights some of the factors that might be
responsible for the volatility of growth in the OECS,
including the region’s exposure to natural disasters, high
debt, and adverse developments in the financial sector.
Chapter two provides new evidence on output volatility and
the cyclicality of fiscal policy in the OECS and discusses
why countries are better off avoiding a pro-cyclical fiscal
policy stance. Chapter three assesses the level of financial
development in the region as well as the relationship
between financial development, growth, and volatility. The
chapter also explores critical policy options to strengthen
financial development in the OECS. Chapter four assesses
empirically the combined effects of terms of trade
volatility, fiscal policy (pro) cyclicality, and financial
development on growth in the OECS and other countries using
two complementary modeling approaches. First, through an
econometric model using panel data for 175 countries over
the period 1980-2010. Second, by using impulse-response
analysis based on a structural model of the business cycle
in the OECS region. |
| format |
Report |
| author |
Carneiro, Francisco Galrao Odawara, Rei |
| author_facet |
Carneiro, Francisco Galrao Odawara, Rei |
| author_sort |
Carneiro, Francisco Galrao |
| title |
Taming Volatility : Fiscal Policy and Financial Development for Growth in the Eastern Caribbean |
| title_short |
Taming Volatility : Fiscal Policy and Financial Development for Growth in the Eastern Caribbean |
| title_full |
Taming Volatility : Fiscal Policy and Financial Development for Growth in the Eastern Caribbean |
| title_fullStr |
Taming Volatility : Fiscal Policy and Financial Development for Growth in the Eastern Caribbean |
| title_full_unstemmed |
Taming Volatility : Fiscal Policy and Financial Development for Growth in the Eastern Caribbean |
| title_sort |
taming volatility : fiscal policy and financial development for growth in the eastern caribbean |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/06/26539208/taming-volatility-fiscal-policy-financial-development-growth-eastern-caribbean http://hdl.handle.net/10986/24925 |
| _version_ |
1764457919942754304 |