The Asymmetric Effect of Trade Openness on Output Volatility: Empirical Evidence from Ethiopia
نویسندگان
چکیده
A better understanding of the effect openness on volatility can lead to more effective government policy that addresses adverse outcomes volatility. By using NARDL model, Hodrick-Prescott (HP) filter, and annual time-series data from period 1981 2020, this study examined output in Ethiopia. From bound test, research find a long-run cointegration between volatility, agricultural output, trade openness, lending rate, money supply. We also found negative asymmetric effect, short-run symmetric volatility—suggesting open trading activity has relationship reduce This possibility shows Ethiopia would benefit international reduces effects Besides, we confirmed positive both long run short run. The represents cost borrowing, coefficients supply have significant
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ژورنال
عنوان ژورنال: JDE (Journal of Developing Economies)
سال: 2023
ISSN: ['2541-1012', '2528-2018']
DOI: https://doi.org/10.20473/jde.v8i1.40886