Institutions-growth spatial dependence: An empirical test
Do institutions spatially affect growth? By employing a neoclassical growth model with institutional controls and augmenting the model with a formal spatial framework, this study finds evidence that institutions has spatial spillover effect on economic growth based on a panel observation from 58 developing countries for the period between 1985-2008. This study also shows that the spatial lag model is the most appropriate to model the spillover effect.
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