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The growth effects on degrowth: what remains of the center-periphery model?

Issaoui, Fakhri and Boufateh, Talel and Ben Ouada Jamoussi, Hanéne and Guesmi, Mourad (2013): The growth effects on degrowth: what remains of the center-periphery model?

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Abstract

Although economic growth is considered one of topics the most discussed and studied by economists, some questions are hitherto unexplored. In this article we will try to address one of these issues by studying the effect of growth shocks of hegemonic countries on the growth of peripheral countries. By using a structural VAR model, we have shown that the peripheral countries integration in trade relations with the center countries, although it may allow the growth of short and medium term, it prevents them, to confirm their long-term economic independence.

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