Spatial Dependence and Economic Growth: Evidence from a Panel of Countries

Borradores de Economia Working Paper No. 206

38 Pages Posted: 3 Jun 2002

See all articles by Maria Teresa Ramirez

Maria Teresa Ramirez

Central Bank of Colombia

Ana Maria Loboguerrero

Inter-American Development Bank (IDB) - Research Department

Date Written: May 2002

Abstract

The empirical growth literature has usually ignored spatial interdependence among countries. This paper uses spatial econometrics to estimate a growth model in which a country's economic growth depends on the growth rate of its neighbors. The results show that spatial relationships are relevant for the entire sample of 98 economies, but when the sample is divided by continents the spatial dependence is not longer significant. Nonetheless, the relevance of spatial effects is recovered when levels of income instead of rates of growth are considered.

Keywords: Economic growth, interdependence, spatial econometrics, levels of income

JEL Classification: O40, O57, R11, C21

Suggested Citation

Ramirez, Maria Teresa and Loboguerrero, Ana Maria, Spatial Dependence and Economic Growth: Evidence from a Panel of Countries (May 2002). Borradores de Economia Working Paper No. 206. Available at SSRN: https://ssrn.com/abstract=311320 or http://dx.doi.org/10.2139/ssrn.311320

Maria Teresa Ramirez (Contact Author)

Central Bank of Colombia ( email )

Cr 7 No.14-78 Piso 11
Bogotá

Ana Maria Loboguerrero

Inter-American Development Bank (IDB) - Research Department ( email )

1300 New York Ave., NW
Washington, DC 20577
United States
202-623-2917 (Phone)

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