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Journal of Economic Integration 2006 March;21(1) :21-39.
The Impact of U.S. Economic Growth on the Rest of the World: How Much Does It Matter?

Vivek AroraAthanasios Vamvakidis 

International Monetary Fund
Copyright ©2006 Journal of Economic Integration

This paper attempts to quantify the extent to which U.S. growth is an “engine” of the world economy. Results based on fixed-effects estimation using panel data suggest a significant positive impact of U.S. growth on growth in the rest of the world, especially developing countries, in recent decades. The impact is as large as one-for-one in some specifications. The results are robust to alternative specifications and to the alternative claim that world growth in recent decades has been driven predominantly by common global shocks.

JEL Classifications: O4, F15

Keywords: Economic growth | Economic integration
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