This paper explores how six indicators of domestic and global development, influence the dissemination of volatility in trading partner growth rates. Using a dynamic panel, fixed-effects, system GMM methodology, I find that for the most part, developing countries can indeed cushion their...

The existing literature argues that both higher levels of political and economic development can dampen real GDP growth volatility. The problem, however, is that both forms of development are thought to be highly correlated. Using a dataset of 94 countries, we address this problem and find that...