Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/273818 
Year of Publication: 
2023
Series/Report no.: 
Tinbergen Institute Discussion Paper No. TI 2023-007/III
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
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.
Subjects: 
Spatial network model
multilevel model
time-varying parameters
economic modeling
trade liberization
growth.
JEL: 
C31
C32
F14
F43
Document Type: 
Working Paper

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