This paper examines economic growth in terms of 'bilateral trade flow' and 'geographical distance' using the spatial dynamic panel data model for the period 1992-2016. The findings illustrate that the effect of spatial spillover or spatial dependence is one of the main economic growth determinants. Also, we find out that spatial relationships across countries and the spatial effects of trade are quite relevant. A country's economic growth is actually affected by the performance of its neighbours and trade partners. This result suggests that the spillover effects of geographical position and trade partners are the key determinants of economic growth. In fact, overlooking such factors can result in misspecification of models. In addition, the findings confirmed that growth rate of labour force has a negative impact on economic growth while the formation of gross fixed capital has a significant positive effect.
Article HistoryIn spite of the wave of liberalizations undertaken during the last 30 years but debate on the relationship between trades, human capital and economic growth is still open. This study aims to study the effect of foreign trade and human capital on economic growth of Asian countries using panel data in the period 2014-1999. The results show that, trade and import in Asian countries have a significant and positive effect on economic growth. Also most of the components of human capital have had a positive effect on economic growth, but other variables not had a significant effect on economic growth.
One of the most fundamental issues worldwide is the economic interdependence of countries which affects their economic growth. Some new growth theorists such as Mankiw et al., Islam, Ertur and Koch, Lee, Yu and Yu Ho et al. consider geographical proximity and trade as spatial variables. This study aims to investigate the spatial effects of geographical distance on economic growth using the spatial dynamic panel data model and the spatial cross section data model for the period 1992-2016 in selected Asian countries. The findings demonstrate that the effect of spatial spillover or spatial dependency is one of the main causes of economic growth spillovers. In the spatial dynamic panel data model, log of gross domestic product (GDP), gross fixed capital formation and growth rate of labor force had negative, positive and negative impacts on economic growth, respectively. In the spatial cross-sectional data models including human capital, log of GDP, gross fixed capital formation and growth rate of labor force had negative impacts on economic growth, while in a model without human capital log of GDP, gross fixed capital formation and growth rate of labor force, respectively, had positive and negative effects on economic growth.
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