Solow Residual Transfer through Trade and Its Impact on Economic Complexity : A Spatial Approach
Previous literature suggests that trade contributes to knowledge and technology spillovers among trading partners. Using panel data and country-specific fixed effects, we show that the economic complexity of a country is explained by technology spillovers from its major trading partners. We build an endogenous growth model for 129 countries for the 1965–2017 period; we draw the residuals to measure the Total Factor Productivity (TFP) of each country. Then, using spatial econometrics, we regress the economic complexity of each country TFP of its major trading partners. In addition, we run a Random Coefficient Model, to let this relationship vary randomly by country. Finally, we run the endogenous growth model again, but now it includes the spatial lag term as an explanatory variable.The crux of this paper is to investigate whether the economic complexity of a country depends on the TFP of its trading partners. However, the TFP of each trading partner on the right-hand side is weighted according to its share of total trade with the country of interest. This is done in a weighting matrix also called the Trade Spatial-lag
Year of publication: |
2019
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Authors: | Fawaz, Fadi |
Other Persons: | Mnif, Anis (contributor) |
Publisher: |
[2019]: [S.l.] : SSRN |
Description of contents: | Abstract [papers.ssrn.com] |
Saved in:
Extent: | 1 Online-Ressource |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 14, 2019 erstellt Volltext nicht verfügbar |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012866715
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