This paper reviews the empirical literature on growth and convergence that has addressed the importance of spatial factors. An important distinction in this literature is the one between absolute and relative location. The literature on absolute location predominantly uses non-spatial...

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...