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Location and the growth of nations


  • Ramon Moreno
  • Bharat Trehan


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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  • Ramon Moreno & Bharat Trehan, 1997. "Location and the growth of nations," Working Papers in Applied Economic Theory 97-02, Federal Reserve Bank of San Francisco.
  • Handle: RePEc:fip:fedfap:97-02

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    1. Kenneth A. Couch & Thomas A. Dunn, 1997. "Intergenerational Correlations in Labor Market Status: A Comparison of the United States and Germany," Journal of Human Resources, University of Wisconsin Press, vol. 32(1), pages 210-232.
    2. Dove E. Marcofte, 1995. "Declining job stability: What we know and what it means," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 14(4), pages 590-598.
    3. 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.
    4. Peter Gottschalk & Robert Moffitt, 1994. "The Growth of Earnings Instability in the U.S. Labor Market," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(2), pages 217-272.
    5. 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 206-233, April.
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    Economic development;


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