Does trade integration imply growth in Latin America? Evidence from a dynamic spatial spillover model

Arbeitspapier

To investigate the role of intra-regional trade integration on economic growth in Latin America, we develop a multilevel spatial production network model with time-varying parameters. The theoretical model is established for a multi-country and multi-sectoral economy. The reduced-form econometric framework relies partly on observation-driven dynamic processes. The finite-sample properties of the maximum likelihood estimates are investigated through a Monte Carlo study. The empirical study is for six countries in Latin America. The findings suggest that intra-country spillovers configure an important factor for explaining growth, while the importance of domestic spillovers is limited. The growth volatility is substantively reduced since 2005.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. TI 2023-007/III

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Empirical Studies of Trade ; Economic Growth of Open Economies
• Subject: Spatial network model ; multilevel model ; time-varying parameters ; economic modeling ; trade liberization ; growth.

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Blasques, F. ; Gorgi, P. ; Koopman, S. J. ; Sampi, J.
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/273818
• Last update: 10.03.2025, 11:43 AM CET