Total factor productivity and macroeconomic instability
Dincer, N. N.
Journal of International Trade and Economic Development
0963-8199 (print)1469-9559 (online)
605 - 629
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Please cite this item using this persistent URLhttp://hdl.handle.net/11693/21765
Total factor productivity (TFP) is an important component of growth for most countries. This article assesses the role of macroeconomic instability on TFP growth. We consider volatility in inflation, openness of an economy and financial market deepness as measures of macroeconomic instability. Empirical evidence provided from Turkey suggests that volatility of openness and financial market deepness reduce TFP growth, whereas volatility of inflation increases TFP growth. © 2011 Taylor & Francis.