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The Importance of Trade and Geography in the Pattern of Spatial Dependence of Growth Rates

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  • Diana Weinhold

Abstract

The paper examines the nature of spatial dependence of growth rates across countries. Economic space as well as geographic space is considered as a possible medium through which growth rates may be correlated. The results indicate that the growth rates of developing countries are influenced by the lagged growth rates of their trading partners’ growth rates. Industrialized countries’ growth rates, on the other hand, display only contemporaneous correlation with others’ growth rates that can be explained by the presence of time‐specific global shocks. The conclusions seem consistent with a general model of North–South trade with endogenous knowledge‐generated growth in the North and imitation, trade‐driven growth in the South.

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  • Diana Weinhold, 2002. "The Importance of Trade and Geography in the Pattern of Spatial Dependence of Growth Rates," Review of Development Economics, Wiley Blackwell, vol. 6(3), pages 369-382, October.
    • Handle: RePEc:bla:rdevec:v:6:y:2002:i:3:p:369-382
    DOI: 10.1111/1467-9361.00161
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    Cited by:

    1. Roberto Patuelli & Daniel A. Griffith & Michael Tiefelsdorf & Peter Nijkamp, 2011. "Spatial Filtering and Eigenvector Stability: Space-Time Models for German Unemployment Data," International Regional Science Review, , vol. 34(2), pages 253-280, April.
    2. 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.
    3. Francis M. Kemegue, 2009. "Pattern of Interdependence of Aggregate FDI from the Same Source Country," Working Papers 200928, University of Pretoria, Department of Economics.
    4. Timothy M. Peterson, 2014. "Taking the cue: The response to US human rights sanctions against third parties," Conflict Management and Peace Science, Peace Science Society (International), vol. 31(2), pages 145-167, April.
    5. Brian Piper, 2014. "Factor-Specific Productivity," Working Papers 1401, Sam Houston State University, Department of Economics and International Business.
    6. Francis M. Kemegue, 2009. "Do Neighbors of Host Countries Matter to Aggregate US FDI Outflows?," Working Papers 200929, University of Pretoria, Department of Economics.

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