| Abstract: |
This paper documents and analyses the volatility of economic growth in rich
and poor countries. It concludes that whereas volatility has declined almost
universally in advanced countries, the picture is more mixed for developing
countries. The paper then concentrates on the case of India, where GDP
volatility has declined over the past two decades. The evidence shows that the
move away from agriculture has stabilised the economy. Increased financial
depth and more favourable developments in terms of trade have had a similar
effect. Finally, the paper discusses the relationship between economic
instability and insecurity at a general level. |