Externalities and interdependent growth: Theory and evidence

Antonio Ciccone

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: I formulate and estimate a model of externalities within countries and technological interdependence across countries. I find that external returns to scale to physical capital within countries are 8 percent; that a 10 percent increase of total factor productivity of a country's neighbors raises its total factor productivity by 6 percent; and that a 2 percent annual growth rate of labor productivity can be explained as an endogenous response to an exogenous 0.2 percent annual growth rate of total factor productivity in the steady--state.

Keywords: Spatial externalities; growth regressions; exogenous growth versus endogenous growth; human versus physical capital externalities (search for similar items in EconPapers)
JEL-codes: E13 O1 O3 O4 (search for similar items in EconPapers)
Date: 1996-10
New Economics Papers: this item is included in nep-env and nep-tid
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:194

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