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Location and the Growth of Nations

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Abstract

Does a country‘s long-term growth depend on what happensin countries that are nearby? Such linkages could occur for avariety of reasons, including demand and technology spillovers.We present a series of tests to determine the existence of suchrelationships and the forms that they might take. We find thata country‘s growth rate is closely related to that of nearbycountries and show that this correlation reflects more than theexistence of common shocks. Trade alone does not appear responsiblefor these linkages either. In addition, we find that being neara large market contributes to growth.

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Authors and Affiliations

  1. Economic Research Division, Federal Reserve Bank of San Francisco, 101 Market Street, San Francisco, CA, 94105, USA

    Ramon Moreno & Bharat Trehan

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  1. Ramon Moreno
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  2. Bharat Trehan
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Moreno, R., Trehan, B. Location and the Growth of Nations. Journal of Economic Growth 2, 399–418 (1997). https://doi.org/10.1023/A:1009741426524

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  • DOI: https://doi.org/10.1023/A:1009741426524

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