Role of Oil in Financial Development-economic Growth Volatility Nexus

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Mehriary, Elnaz | 2014

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 45807 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Nili, Masoud; Madanizadeh, Ali
Abstract:
In this research, we investigate the role of oil and degree of dependence to it on nexus between financial development and growth volatility. The link between financial development and growthvolatility has been the focus of extensive literature, but no empirical study has been investigated the role of oilin relationship between financial development and growth fluctuations. By using information of 78 developing countries (11 oil exporting and 67 non-oil countries) during 1983-2008, we construct a dynamic model. Difference GMM technique is used to estimate the model. Our findings show that negative impact of financial development on volatility of GDP, Investment and Consumptiongrowth is weaker in oil exporting countries compared with nonoil developing countries.In addition, the more dependent on oil, the less negative impact of financial development on growth volatility
Keywords:
Financial Development ; Oil Exporting Countries ; Dynamic Model ; Economic Growth ; Growth Volatility

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