Paper #194
- Title:
- Externalities and interdependent growth: Theory and evidence
- Author:
- Antonio Ciccone
- Date:
- October 1996
- 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
- JEL codes:
- E13, O1, O3, O4
- Area of Research:
- Macroeconomics and International Economics
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