Does uncertainty affect economic growth? An empirical analysis

Does Uncertainty Affect Economic Growth? An Empirical Analysis. This paper investigates the effect of uncertainty on economic growth, We construct measures of export uncertainty, government policy uncertainty and price uncertainty to augment a growth model, and using econometric techniques we test for robustness of the effects of these measures on economic growth in a cross-section of 138 developing and developed economies during the 1970-1995 period, The result clearly shows a robust and negative effect of uncertainty on economic growth, These results underline the importance of export stability and policy credibility.