Spatial Dependence and Economic Growth: Evidence from a panel of Countries
AbstractThe empirical literature about economic growth has usually ignored spatial interdependence among countries. This paper uses spatial econometrics to estimates a growth model that includes cross-country interdependence, in whitch a country's economic growth depends on the growth rate of its neighbords. Based on a sample of 98 countries over three decades (1965-75,1975-85, 1985-95) we find that espatial relationschip across countries are quite relevant. A country's economic growt is indeed affected by the perfomance of its neighbors and then influenced by its own geographical position. This results suggests that the spillover effects among countries are important for growth.Our results indicate that spatial interrelation can not be ignored in the analysis of economic growth. Ignoring such relationships can result in model misspecification.
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Bibliographic InfoPaper provided by Banco de la Republica de Colombia in its series Borradores de Economia with number 206.
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Spatial economterics; economic growth; interdependence.;
Other versions of this item:
- María Teresa Ramírez & Ana María Loboguerrero, 2002. "Spatial Dependence and Economic Growth: Evidence From a Panel of Countries," BORRADORES DE ECONOMIA 003522, BANCO DE LA REPÚBLICA.
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-04-02 (All new papers)
- NEP-DEV-2003-04-02 (Development)
- NEP-GEO-2003-04-02 (Economic Geography)
- NEP-MAC-2003-04-02 (Macroeconomics)
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