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Title: |
Core and Periphery in the World Economy: An Empirical Assessment of the
Integration of the Developing Countries into the World Economy |
| Author: |
Horvath,
Julius; Grabowski, Richard |
| Author
Affiliation: |
ZEI, U Bonn and Central European U;
Southern IL U |
| Source: |
International Economic Journal, Winter 1999, v. 13, no. 4, pp. 35-51 |
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Publication Date: |
Winter 1999 |
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Abstract: |
In this paper a dynamic structural
vector-autoregressive model is utilized to analyze the impact of shocks
from the developed center (G-7) on the less developed periphery. Three
possibilities emerge with less developed nations being negatively
dependent on the center, positively integrated with the center, or
independent of the center. A less developed country is classified as
negatively dependent when shocks from the center have a negative impact
and are relatively important in explaining variations in the output of
the developing country. A less developed country is positively
integrated if the shocks from the center have positive effects and
explain a large share of the variation in output in the developing
country. The results indicate that from the sample of eighty-six
developed countries only five could be considered dependent, while the
others are roughly equally divided into those positively integrated and
those that are independent. |
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