Abstract
One of the most fundamental issues worldwide is the economic interdependence of countries which affects their economic growth. Some new growth theorists such as Mankiw et al., Islam, Ertur and Koch, Lee, Yu and Yu Ho et al. consider geographical proximity and trade as spatial variables. This study aims to investigate the spatial effects of geographical distance on economic growth using the spatial dynamic panel data model and the spatial cross section data model for the period 1992–2016 in selected Asian countries. The findings demonstrate that the effect of spatial spillover or spatial dependency is one of the main causes of economic growth spillovers. In the spatial dynamic panel data model, log of gross domestic product (GDP), gross fixed capital formation and growth rate of labor force had negative, positive and negative impacts on economic growth, respectively. In the spatial cross-sectional data models including human capital, log of GDP, gross fixed capital formation and growth rate of labor force had negative impacts on economic growth, while in a model without human capital log of GDP, gross fixed capital formation and growth rate of labor force, respectively, had positive and negative effects on economic growth.
Highlights
Economic growth and its determinants are fundamental for every country
In the Solow’s models, economic growth increases due to the lower returns of capital to the workforce by increasing physical capital and reducing labor force growth rates
The findings indicated that there was a positive spillover effect of growth from one country to its neighboring countries in the spatial dynamic panel data model and a negative spillover effect of the growth of one country to its neighboring countries in the spatial cross-sectional data model
Summary
Economic growth and its determinants are fundamental for every country. It is essential to study the influences of economic growth from different angles. Branches of economics dealing with the analysis of economic growth category, its causes and developments in geographical space have been essential topics of economics. It is necessary to unify geography and new growth theory, or at least to develop some junction models. The standard neoclassical economic growth model was developed by [30, 31] in the 1950s. The saving rate and the Malthusian labor growth are exogenously given. Solow proposed a new analysis of growth model that is in many ways consistent with the
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
