{
  "title": "How Much Do Trading Partners Matter for Economic Growth?",
  "publication": "IMF Working Papers, February 1, 2004",
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  "summary": "This paper empirically examines the extent to which a country's economic growth is influenced by its trading partner economies.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- This paper empirically examines the extent to which a country's economic growth is influenced by its trading partner economies.\n- Panel estimation results are based on four decades of data for over 100 countries.\n- The analysis controls for the influence of common global and regional trends."
    },
    {
      "heading": "Key Findings",
      "content": "- Trading partners' growth and relative income levels have a strong effect on domestic growth.\n- The results hold even after controlling for common global and regional trends.\n- One interpretation: conditional convergence is stronger, the richer are a country's trading partners.\n- A general implication:\n  - Industrial countries benefit from trading with developing countries, which grow rapidly.\n  - Developing countries benefit from trading with industrial countries, which have relatively high incomes."
    },
    {
      "heading": "Data, Scope, and Methods",
      "content": "- Empirical approach: panel estimation.\n- Time span: four decades.\n- Coverage: over 100 countries.\n- Controls: common global and regional trends."
    },
    {
      "heading": "Policy-Relevant Implications",
      "content": "- Bilateral trade relationships matter for domestic growth outcomes beyond global and regional cycles.\n- Trade policy and integration strategies should consider trading-partner income levels and growth dynamics when assessing potential growth spillovers.\n- Diversifying trading partners across different income-level profiles may yield complementary benefits:\n  - Access to rapidly growing developing-country markets can boost industrial-country growth.\n  - Access to high-income industrial-country markets can support developing-country income and growth.\n\n---\n\n Content in this bundle\n\n- wp0426\n  - wp0426 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0426 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/how-much-do-trading-partners-matter-for-economic-growth-17141"
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    "Authors: Vivek Arora, Athanasios Vamvakidis",
    "Published: February 1, 2004",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451844412.001",
    "This paper empirically examines the extent to which a country's economic growth is influenced by its trading partner economies.",
    "Panel estimation results are based on four decades of data for over 100 countries.",
    "The analysis controls for the influence of common global and regional trends.",
    "Trading partners' growth and relative income levels have a strong effect on domestic growth.",
    "The results hold even after controlling for common global and regional trends.",
    "One interpretation: conditional convergence is stronger, the richer are a country's trading partners.",
    "A general implication:",
    "Empirical approach: panel estimation.",
    "Time span: four decades.",
    "Coverage: over 100 countries.",
    "Controls: common global and regional trends.",
    "Bilateral trade relationships matter for domestic growth outcomes beyond global and regional cycles.",
    "Trade policy and integration strategies should consider trading-partner income levels and growth dynamics when assessing potential growth spillovers.",
    "Diversifying trading partners across different income-level profiles may yield complementary benefits:",
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