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

_IMF Working Papers, December 1, 2007_

## Source details

**Canonical URL:** [Changing Nature of North-South Linkages: Stylized Facts and Explanations](https://www.imf.org/en/publications/wp/issues/2016/12/31/changing-nature-of-north-south-linkages-stylized-facts-and-explanations-21423)

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## Bibliographic details
- Authors: Cigdem Akin, Ayhan Kose
- Published: December 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451868432.001

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### Summary
- Paper examines changing nature of growth spillovers between developed economies (the North) and developing countries (the South) driven by globalization (rising international trade and financial flows).
- South is divided into Emerging South and Developing South based on extent of integration into the global economy.
- Uses a comprehensive database of macroeconomic and sectoral variables for 106 countries over the period 1960- 2005.
- Employs a panel regression framework.
- Main stylized facts:
  - Impact of Northern economic activity on the Emerging South has declined during the globalization period (1986-2005).
  - Growth linkages between the North and Developing South have been rather stable over time.
  - Northern and Emerging Southern economies have started to exhibit more intensive intra-group growth spillovers.

### Data and Methodology
- Coverage: 106 countries.
- Time span: 1960- 2005.
- Empirical approach: panel regression framework using macroeconomic and sectoral variables.
- Country grouping: North (developed economies), Emerging South, Developing South (based on extent of integration into the global economy).

### Key Findings
- Decline in North → Emerging South spillovers during globalization period:
  - The impact of Northern economic activity on the Emerging South decreased in 1986-2005 relative to earlier periods.
- Stability in North → Developing South spillovers:
  - Growth linkages between the North and Developing South remained rather stable over time.
- Rise in intra-group spillovers:
  - Northern economies and Emerging Southern economies display more intensive intra-group growth spillovers.

### Subject Areas and Keywords
- Subject: Business cycles, Exports, Globalization, Spillovers, Trade balance
- Keywords: Emerging South economy, Emerging South group, globalization period, growth spillover, WP

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/changing-nature-of-north-south-linkages-stylized-facts-and-explanations-21423_