Institutions-growth spatial dependence: An empirical test

Ahmad, Mahyudin and Hall, Stephen G. (2012): Institutions-growth spatial dependence: An empirical test. Forthcoming in: Procedia - Social and Behavioral Sciences (1 December 2012)

Abstract

Do institutions spatially affect growth? By employing a neoclassical growth model with institutional controls and augmenting the model with a formal spatial framework, this study finds evidence that institutions has spatial spillover effect on economic growth based on a panel observation from 58 developing countries for the period between 1985-2008. This study also shows that the spatial lag model is the most appropriate to model the spillover effect.

• Item Type: MPRA Paper
• Language: English
• Keywords: Institutions; economic growth; spatial dependence; spillover effect; spatial lag model
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R10 - General; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C31 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions ; Social Interaction Models

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