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The phenomenon of growth spillover occurs because of domestic shocks, global shocks and shocks to a foreign country or region, and these are transmitted through specific channels. This study investigates the strength of the economic linkages between Caribbean Community (CARICOM) economies and its main traditional partners, including the European Union (EU-27), and emerging trading partners, such as China, with a view to determining the presence and extent of spillover growth which results from the interdependence among these economies. The paper hypothesizes that the presence of these spillovers can be leveraged to chart the future for the region's integration in the global sphere.

Based on the existing theoretical and empirical literature, a structural vector autoregressive (SVAR) model was developed and employed to examine the strength of the economic linkages between CARICOM economies and its main trading partners, such as the United States (US), the United Kingdom (UK) and the EU-27, alongside some of the non-traditional partners such as China. This method has been widely used by institutions, such as the International Monetary Fund (IMF) and World Bank, to profile economic linkages between economies. To this end, the methodology was formulated based on the IMF Spillover Reports which were produced from 2011 to 2015.

The model suggests that positive spillovers are likely to occur from continued deepened integration with the US, EU-27 and the UK, as traditional trade partners, but that opportunities also exist from a deliberate deepening of relations with non-traditional trade partners, for example, China. This becomes even more apparent when CARICOM is separated into categories consisting of more developed countries (MDCs) and less developed countries (LDCs). In addition, from the perspective of any trading partner, such as those in the EU-27, this research is relevant and timely as it contributes to the landscape of literature, which can be utilized for the purpose of negotiating parameters of trade and integration arrangements.

This study adds to the literature on evaluating the direction for deepened integration of CARICOM economies, both with selected traditional and non-traditional trade partners as the region pilots recovery in a post-pandemic global space.

Policymakers can use the results of this study to leverage economic spillovers as a basis for determining which trade partners offer the most significant growth benefits as the region recovers from the COVID-19 pandemic and it will also assist in steering regional integration. This result also implies that over time, the comparative advantage structure of CARICOM member countries' export profile should change to reflect the import profile of its trade partners. To this end, this study can be used to inform and better position the respective trade and industrial development policies of countries in the Caribbean region as they attempt to deepen integration regionally and internationally. From the perspective of the partner, traditional trading relationships such as those which exist with European countries, such as the CARIFORUM-EU Economic Partnership Agreement, can be more deliberately utilized given the geographic benefits on offer with deepened relationships with economies in the Caribbean. Further, this research can also be a point of departure for future research.

This study is among the few empirical works that examine spillover effects as a strategy for rebuilding economic growth in the post-COVID 19 era. This study adds to the literature on evaluating the direction for deepened integration of CARICOM economies, both with selected traditional and non-traditional trade partners as the region navigates recovery in a post-pandemic global space.

This chapter estimates heterogeneous productivity growth and spatial spillovers through industrial linkages in the United States and China from 1981 to 2010. The authors employ a spatial Durbin stochastic frontier model and estimates with a spatial weight matrix based on inter-country input–output linkages to describe the spatial interdependencies in technology. The authors estimate productivity growth and spillovers at the industry level using the World KLEMS database. The spillovers of factor inputs and productivity growth are decomposed into domestic and international effects. Most of the spillover effects are found to be significant and the spillovers of productivity growth offered and received provide detailed information reflecting interdependence of the industries in the global value chain (GVC). The authors use this model to evaluate the impact of a US–Sino decoupling of trade links based on simulations of four scenarios of the reductions in bilateral intermediate trade. Their estimation results and their simulations are as mentioned based on date that ends in 2010, as this is the only KLEMS data available for these countries at this level of industrial disaggregation. As the GVC linkages between the United States and China have expanded since the end of their sample period their results can be viewed as informative in their own right for this period as well as possible lower bounds on the extent of the spillovers generated by an expanding GVC.

We extend a classic macroeconomic framework guided by extensive empirical and theoretical literature on growth transmission channels and shock decomposition, with the purpose of measuring the growth spillovers from G-10 countries to the US.

We use a time-varying parameter vector autoregressive (TVP-VAR) model with dynamic structures to measure time-varying external spillover effects under different economic conditions, i.e. controlled by a representative set of American macroeconomic variables.

Based on our empirical exercise from 1996q3 to 2023q1, we emphasize the roles of France and Russia in the late 1990s as well as the G7 (excluding the US) and Eurozone countries following the pandemic. We also provide insights into the internal transmission channels.

We find that Germany, Japan and Italy only managed to have a net spillover effect on the US in one or two quarters in 1996 and 1997, while the influence of Canada, China, the UK and India appears to affect American growth between 1996 and 1999. The influences of France and Russia are stronger, as they can impact the American economy for more than 30 quarters. Regarding economic blocs, the G7 (excluding the US) and the Eurozone can impact the US during and after the pandemic.

Our results on internal pass-through show a relevant role played by the high levels of American debt and interest rates. This finding is relevant and worrying, and it is aligned with literature on the effects of high levels of public indebtedness and inflation after the pandemic, even in developing economies. In this context, according to empirical findings reported by Matos et al. (2024) based on conditional wavelet tools, most relationships between debt and GDP are given by anti-phasic leadership of the debt (0–4-year frequency period), while inflation can lead to growth in the opposite direction (0–8-year frequency period).

This evidence is significant as recent years have reshaped the understanding of power, with several states emerging as new powers. The role of economic blocs after the pandemic supports this viewpoint. To summarize, both the domestic macroeconomic scenario and the geopolitical forces pose challenges to the American economy.

Our work differs from previous related studies in two aspects. First, unlike most, we use the conditional connectedness approach outlined by Stenfors et al. (2022). Second, we extend a macroeconomic-based growth cycle model instead of a neoclassical approach.

The prevailing theories of entrepreneurship have typically revolved around the ability of individuals to recognize opportunities and act on them by starting new ventures. This has generated a literature asking why entrepreneurial behavior varies across individuals with different characteristics, while implicitly holding the external context in which the individual finds oneself to be constant. Thus, where the opportunities come from, or the source of entrepreneurial opportunities, are also implicitly taken as given. By contrast, we provide a theory identifying at least one source of entrepreneurial opportunity – new knowledge and ideas that are not fully commercialized by the organization actually investing in the creation of that knowledge. The knowledge spillover theory of entrepreneurship holds individual characteristics as given, but lets the context vary. In particular, high knowledge contexts are found to generate more entrepreneurial opportunities, where the entrepreneur serves as a conduit for knowledge spillovers. By contrast, impoverished knowledge contexts are found to generate fewer entrepreneurial opportunities. By serving as a conduit for knowledge spillovers, entrepreneurship is the missing link between investments in new knowledge and economic growth. Thus, the knowledge spillover theory of entrepreneurship provides not just an explanation of why entrepreneurship has become more prevalent as the factor of knowledge has emerged as a crucial source for comparative advantage, but also why entrepreneurship plays a vital role in generating economic growth. Entrepreneurship is an important mechanism permeating the knowledge filter to facilitate the spillover of knowledge, and ultimately generating economic growth.

The purpose of this paper is to develop a double mechanism model to separate two foreign direct investment (FDI) intra-industry spillovers mechanisms: spillovers by FDI intensity and by FDI efficiency. This paper seeks to illustrate the potential use of the double mechanism model rather than provide precise estimates of spillovers. The evidence on the links between technology and the nature, size and mechanisms of FDI spillovers effects in economically developing countries is mixed.

A model is developed and tested, in principle. Empirical testing was conducted in two steps. In the first step, the authors examined the effect of each influencing factor to FDI spillovers separately. To complete this step, the authors divided the whole sample industry into sub-groups and tested them with the double-mechanism using ordinary least squares regression. This study applies Chinese National Bureau of Statistics manufacturing industry level data, for the years 2000, 2001 and 2002, including the food industry, beverage industry, textile industry, textiles and garments, chemicals and chemical products industry, overall manufacturing equipment, special equipment, computer and other electronic equipment manufacturing industries.

The analysis suggests significant differences between types of spillovers: export orientation of domestic firms mainly influences FDI spillovers by intensity; the capability gap between local and foreign firms influences spillovers by efficiency; and the growth of local firms influences both types of spillovers. This paper develops existing models of FDI and suggests that disaggregating spillovers types may provide important theoretical and policy insights.

This study has found, first, that compared with the classic single mechanism model, the double mechanism model is more appropriate for testing FDI intra-industry spillovers, as it is able to separate spillovers by intensity and spillovers by efficiency, which are shown as two distinct mechanisms for FDI spillovers. This allows a deeper analysis into each mechanism and the identification of relevant influencing factors.

Why should entrepreneurship matter for economic growth, employment creation and international competitiveness? The entrepreneurship literature has traditionally suggested that entrepreneurship matters to individuals and firms, but rarely for economic growth.

When spillovers are measured at a national level, the regional benefits may not be identified if they are too small. Very few studies that examined how FDI impacts the regional productivity of the host nations have shown mixed results. The evidence is still scarce and little is known about how the regional penetration of FDI affects the regional productivity performance. The trajectory of regional productivity growth in India has been a subject of scrutiny and intense debates and remains less systematically investigated. The purpose of this paper is to fill this lacuna by investigating the effect of FDI spillover on regional productivity in Indian states.

Using data supplied by the Central Statistical Organization, National Statistical Organization, National Sample Survey Office, and National Accounts Statistics, Government of India at the Indian Ministry of Statistics and Programme Implementation, first, the study employs stochastic frontier model to explore the extent to which FDI spillover contributes to the regional productivity from panel data of 28 Indian states over 1993-2013. Second, the study examines the roles of absorptive ability and technology gap on productivity effect of FDI. Third, by adopting SFA, we measure productivity growth of Indian states in terms of Malmquist productivity index. Fourth, India’s development is imbalanced. To analyze the imbalance due to skewed distribution of FDI among Indian states, Indian states are divided into three regions, and the spillover effects of FDI on TFP in these regions are explored.

The results on the effects of FDI spillover on regional productivity in India using stochastic frontier and panel data from 28 states over 1993-2013 show that R&D, technology import, human capital, and various specifications of FDI have a significant impact on the regional productivity in India except technology gap. Study does not find support for the resource curse hypothesis in Indian states. Productivity growth for India using the Malmquist TFP index based on the stochastic frontier shows positive impact. The TFP growth in the three regions of India is turned to be differently attributed by the FDI spillover.

Little is known about how the regional penetration of FDI affects the regional productivity performance. This research aims to fill this lacuna by investigating the effect of FDI spillover on regional productivity in Indian states which has been a subject of scrutiny and intense debates.

The purpose of this paper is to measure the factors determining the productivity development in the Asia Pacific countries such as Malaysia, Indonesia, Singapore, Philippines, Thailand, China, Japan, Korea, India, Australia and New Zealand.

The extensive growth theory that is expressed as the decomposition of the contribution of changes in employment, physical capital, foreign direct investment (FDI), human capital (HC), telecommunications investment and total factor productivity (TFP) growth on the selected Asia-Pacific countries’ output growth is used in this study. In this respect, an annual time series data over the period 1970-2012 for the aforementioned variables are employed.

The study found that the FDI spillover effects through the TFP are considered as productivity-driven economic growth in which the FDI spillover effects have significant effect on the productivity growth of the majority of these countries. It should be noted that most of these countries showed technological progress through the FDI spillover effects that is translated into a form of technology transfer and HC skills development.

This study empirically compared the FDI spillover effects on sustainable productivity growth of the most growing countries in the Asia Pacific region by using modified extensive growth theory that closed the gaps in the past studies and addressed the issues of technology transfer, HC development and sustainable productivity growth brought by the technical progress in these countries through the FDI spillover effects on productivity growth.

This paper considers a broader concept of economic integration in order to analyze the impact of integration on economic growth within the context of the knowledge-driven endogenous economic growth model. The equilibrium growth rate derived from the model implies that while increasing the flow of ideas from integration speeds up the long-run rate of growth, impact of trade liberalization is complicated and not decisive. The overall impact of economic integration on • economic growth depends on various aspects of the economy which are related to its R&D investment such as knowledge spillovers, and industrial and market structures. The results of this paper suggest that policy makers need to consider international economic policy, market structure and industrial policy all at once, with special emphasis on the effect affirms' R&D activities when making decisions on economic integration.