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Location and the growth of nations

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Author Info
Ramon Moreno
Bharat Trehan

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Abstract

Does a country's (long-term) growth depend upon what happens in countries that are nearby? Such linkages could occur for a variety of reasons, including demand and technology spillovers. We present a series of tests to determine the existence of such relationships and the forms that they might take. We find that a country's growth rate is closely related to that of nearby countries, and show that this correlation reflects more that the existence of common shocks. Trade alone does not appear responsible for these linkages either. In addition, we find that being near a large market contributes to growth.

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Paper provided by Federal Reserve Bank of San Francisco in its series Working Papers in Applied Economic Theory with number 97-02.

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Date of creation: 1997
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Handle: RePEc:fip:fedfap:97-02

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Keywords: Economic development

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Couch, Kenneth A. & Lillard, Dean R., 1998. "Sample selection rules and the intergenerational correlation of earnings," Labour Economics, Elsevier, vol. 5(3), pages 313-329, September. [Downloadable!] (restricted)
  2. Diebold, Francis X & Neumark, David & Polsky, Daniel, 1997. "Job Stability in the United States," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 206-33, April. [Downloadable!] (restricted)
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