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International Growth Spillovers, Geography and Infrastructure

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  • Mark Roberts
  • Uwe Deichmann

Abstract

There is significant academic evidence that growth in one country tends to have a positive impact on growth in neighboring countries. This paper contributes to this literature by assessing whether growth spillovers tend to vary significantly across world regions and by investigating the contribution of transport and communication infrastructure in promoting neighborhood effects. The study is global, but the main interest is on Sub-Saharan Africa. The authors define neighborhoods both in geographic terms and by membership in the same regional trade association. The analysis finds significant evidence for heterogeneity in growth spillovers, which are strong between OECD countries and essentially absent in Sub-Saharan Africa. The analysis further finds strong interaction between infrastructure and being a landlocked country. This suggests that growth spillovers from regional"success stories"in Sub-Saharan Africa and other lagging world regions will depend on first strengthening the channels through which such spillovers can spread -- most importantly infrastructure endowments.
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Suggested Citation

  • Mark Roberts & Uwe Deichmann, 2011. "International Growth Spillovers, Geography and Infrastructure," The World Economy, Wiley Blackwell, vol. 34(9), pages 1507-1533, September.
    • Handle: RePEc:bla:worlde:v:34:y:2011:i:9:p:1507-1533
    DOI: j.1467-9701.2011.01392.x
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    Cited by:

    1. Warwick J. McKibbin & Andrew B. Stoeckel & YingYing Lu, 2014. "Global Fiscal Adjustment and Trade Rebalancing," The World Economy, Wiley Blackwell, vol. 37(7), pages 892-922, July.
    2. Bonfatti, Roberto & Poelhekke, Steven, 2017. "From mine to coast: Transport infrastructure and the direction of trade in developing countries," Journal of Development Economics, Elsevier, vol. 127(C), pages 91-108.
    3. Brian Piper, 2014. "Growing at Your Neighbor’s Expense? A Spatial examination of growth in the Americas," Working Papers 1402, Sam Houston State University, Department of Economics and International Business.
    4. Douglas H. Brooks & Eugenia C. Go, 2013. "Infrastructure," Chapters, in: Hal Hill & Maria Socorro Gochoco-Bautista (ed.), Asia Rising, chapter 3, pages 76-103, Edward Elgar Publishing.
    5. Sven Wardenburg & Thomas Brenner, 2021. "Analysing the spatio-temporal diffusion of economic change - advanced statistical approach and exemplary application," Working Papers on Innovation and Space 2021-01, Philipps University Marburg, Department of Geography.
    6. Merve Aksoylar Baysoy & Sumru Altug, 2019. "Growth Spillovers in the MENA Region," Koç University-TUSIAD Economic Research Forum Working Papers 1909, Koc University-TUSIAD Economic Research Forum.
    7. Brian Piper, 2014. "Factor-Specific Productivity," Working Papers 1401, Sam Houston State University, Department of Economics and International Business.
    8. Warwick McKibbin & Timo Henckel, 2010. "The Economics of Infrastructure in a Globalized World: Issues, Lessons and Future Challenges," CAMA Working Papers 2010-39, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    9. Francisco Arizala & Mr. Matthieu Bellon & Ms. Margaux MacDonald, 2019. "Regional Growth Spillovers in Sub-Saharan Africa," IMF Working Papers 2019/160, International Monetary Fund.

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