Changing Nature of North-South Linkages: Stylized Facts and Explanations

56 Pages Posted: 17 Dec 2007 Last revised: 7 Feb 2008

See all articles by Çiğdem Akın

Çiğdem Akın

The Johns Hopkins University School of Advanced International Studies (SAIS) ; Johns Hopkins University SAIS International Economics Program; Johns Hopkins University SAIS International Economics Program

M. Ayhan Kose

World Bank; Brookings Institution; Centre for Economic Policy Research (CEPR); Australian National University (ANU)

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Date Written: December 2007

Abstract

This paper examines the changing nature of growth spillovers between developed economies, the North, and developing countries, the South, driven by the process of globalization - the phenomenon of rising international trade and financial flows. We use a comprehensive database of macroeconomic and sectoral variables for 106 countries over the period 1960-2005. We consider the South to be composed of two groups of countries, the Emerging South and the Developing South, based on the extent of their integration into the global economy. Using a panel regression framework, we find that the impact of the Northern economic activity on the Emerging South has declined during the globalization period (1986-2005). In contrast, the growth linkages between the North and Developing South have been rather stable over time. Our findings also suggest that the North and Emerging South economies have started to exhibit more intensive intra-group growth spillovers.

Keywords: Business cycles, emerging markets, growth linkages, north, south, globalization, decoupling, divergence, convergence

JEL Classification: F15, F42, F43

Suggested Citation

Akın, Çiğdem and Akın, Çiğdem and Akın, Çiğdem and Kose, M. Ayhan, Changing Nature of North-South Linkages: Stylized Facts and Explanations (December 2007). Available at SSRN: https://ssrn.com/abstract=1075343 or http://dx.doi.org/10.2139/ssrn.1075343

Çiğdem Akın (Contact Author)

Johns Hopkins University SAIS International Economics Program ( email )

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The Johns Hopkins University School of Advanced International Studies (SAIS) ( email )

1717 Massachusetts Avenue, NW BOB 718
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202 5317509 (Phone)
202 6637718 (Fax)

Johns Hopkins University SAIS International Economics Program ( email )

1717 Massachusetts Avenue, NW
Washington, DC 20036-1984
United States
202 5317509 (Phone)
202 6637718 (Fax)

M. Ayhan Kose

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601
Australia

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