By Stephen G. Hall and Pavlos Petroulas, 2008


Recent theoretical approaches stress the importance of complex integration strategies of multinationals and the interdependence between locations. Up till now little has been done to incorporate the potential cross-country dependencies into the empirical analysis of the determinants and the structure of foreign direct investment. By utilizing a panel data set that consists of real FDI stocks for 476 country pairs for the years 1994-2004 and a distance weighted spatial matrix, we find significant third country effects. Interestingly, the bilateral variables seem to be in concordance with the notion of horizontally motivated FDI while the spatial third country effects seem to comply with the notion of vertical FDI and production fragmentation. While bilateral variables seem to dominate location decisions the results confirm the existence and importance of international interdependence.

By María Teresa Ramírez and Ana María Loboguerrero, 2002


The empirical literature about economic growth has usually ignored spatial interdependence among countries. This paper uses spatial econometrics to estimate a growth model that includes cross-country interdependence, in which a country’s economic growth depends on the growth rate of its neighbors. Based on a sample of 98 countries over three decades (1965-75, 1975-85, 1985-95) we find that spatial relationships across countries are quite relevant. A country’s economic growth is indeed affected by the performance of its neighbors and then influenced by its own geographical position. This result suggests that the spillover effects among countries are important for growth. Our results indicate that spatial interrelation can not be ignored in the analysis of economic growth. Ignoring such relationships can result in model misspecification.

By Cătălin Angelo Ioan and Gina Ioan, 2016


The article deals with neighborhood ties to European Union countries in terms of graph theory. It is determined the minimum distance between states - the number of links in a graph and then their degree of connectivity to the Union. It also studied the link between the degree of connectivity with low GDP per capita considering that the development of the relatively isolated states can not grow without the development of communications infrastructure.

By Geoffrey J.D. Hewings and John B. Parr, 2006


Consideration is given to the spatial structure of the metropolitan area, and to the tendency for this to be generalized in terms of the stark dichotomy of city and suburbs. Focusing on a four-zone metropolitan area, a model of spatial interaction is outlined, the components of which are based on intersectoral trade, labor mobility, and consumption-expenditure patterns. These components are drawn together as layers in an organized sequence of processes. The linked components are shown to give rise to intricate patterns of spatial interdependence. These have the effect of blurring the city-suburbs distinction, and are fundamentally different from comparable patterns at other spatial scales.