TY - JOUR
T1 - Commodity price volatility and world market integration since 1700
AU - Jacks, David S.
AU - O'rourke, Kevin H.
AU - Williamson, Jeffrey G.
PY - 2011/8
Y1 - 2011/8
N2 - Abstract-Poor countries are more volatile than rich countries, and this volatility impedes their growth. Furthermore, commodity prices are a key source of that volatility. This paper explores price volatility since 1700 to offer three stylized facts: commodity price volatility has not increased over time, commodities have always shown greater price volatility than manufactures, and world market integration breeds less commodity price volatility. Thus, economic isolation is associated with much greater commodity price volatility, while world market integration is associated with less.
AB - Abstract-Poor countries are more volatile than rich countries, and this volatility impedes their growth. Furthermore, commodity prices are a key source of that volatility. This paper explores price volatility since 1700 to offer three stylized facts: commodity price volatility has not increased over time, commodities have always shown greater price volatility than manufactures, and world market integration breeds less commodity price volatility. Thus, economic isolation is associated with much greater commodity price volatility, while world market integration is associated with less.
UR - http://www.scopus.com/inward/record.url?scp=80053933455&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=80053933455&partnerID=8YFLogxK
U2 - 10.1162/REST_a_00091
DO - 10.1162/REST_a_00091
M3 - Article
AN - SCOPUS:80053933455
SN - 0034-6535
VL - 93
SP - 800
EP - 813
JO - Review of Economics and Statistics
JF - Review of Economics and Statistics
IS - 3
ER -