1887

n Studies in Economics and Econometrics - Division, international integration, and economic development

Volume 33, Issue 2
  • ISSN : 0379-6205

Abstract

This paper examines the impact of divisions between nation-states and of international integration on per capita GDP in developing countries. Based on data from the World Bank and using a sample of fifty-nine developing economies, we find that per capita GDP is linearly dependent upon various measures of economic divisions and integration such as the number of countries for which the nationals of a country need a visa, the percentage of foreigners born in a country other than that in which they live (including refugees), the index of shipping difficulties, average tariffs as a percentage of import value, country size, the proportion of the total population living in less than 25kms from a coastline, and trade with neighbouring countries as a proportion of the total trade of the country. The inclusion of interaction variables yields superior results as it takes into account the problem of multicollinearity among some explanatory variables. Statistical results of such empirical examination will assist policy makers in those countries identify areas the budgets for which need to be reallocated in order to stimulate economic development.

Loading full text...

Full text loading...

Loading

Article metrics loading...

/content/bersee/33/2/EJC21484
2009-01-01
2019-10-23

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error