The effects of uncertainty on growth

Abstract

This paper aims to examine the impact of uncertainty on growth. In other words, this is an effort to investigate the relationship between uncertainty and economic growth. Data from 35 countries during the period 1985-2015 are used. This relationship is estimated using panel data regressions. The main finding of the paper is that uncertainty of gdp, inflation and unemployment is a negative determinant of growth.The project proceeds as follows:The first section named as literature review consists of a brief presentation of the theories and project results developed by now regarding the relationship of uncertainty and growth.The second part of the paper includes the empirical study, the main results and the analysis of the findings.The final part provides a summary and some closing remarks.