Core and periphery in the world economy: An empirical assessment of the integration of the developing countries into the world economy

Július Horváth, Richard Grabowski

    Research output: Contribution to journalArticlepeer-review

    Abstract (may include machine translation)

    In this paper a dynamic structural vector-autoregressive model is utilized to Analyze the impact of shocks from the developed center (G-7) on the less developed periphery. Three possibilities emerge with less developed nations being negatively dependent on the center, positively integrated with the center, or independent of the center. A less developed country is classified as negatively dependent when shocks from the center have a negative impact and are relatively important in explaining variations in the output of the developing country. A less developed country is positively integrated if the shocks from the center have positive effects and explain a large share of the variation in output in the developing country. The results indicate that from the sample of eighty-six developed countries only five could be considered dependent, while the others are roughly equally divided into those positively integrated and those that are independent. [F02, F43, 050].

    Original languageEnglish
    Pages (from-to)35-51
    Number of pages17
    JournalInternational Economic Journal
    Volume13
    Issue number4
    DOIs
    StatePublished - Dec 1999

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