Modeling the impact of commodity terms of trade volatility on economic growth

In this study the «resource curse» hypothesis in the context of volatility is tasted on panel data on 135 countries for the period from 1980 to 2019. The application of the Hodrick-Prescott filter and the Baxter-King filter to GDP series in this paper makes it possible to interpret the results of econometric analysis in the context of economic growth, rather than GDP dynamics. The obtained estimates in models with country fixed effects indicate that the volatility associated with resource dependence can be regarded as the source of the negative impact of the natural resource dependence on the processes of economic growth. The symptoms of the «resource curse» are expressed in the negative impact of the volatility of commodity terms of trade on economic growth.