Multidimensional Connectivity : Benefits, Risks, and Policy Implications for Europe and Central Asia
International connections through trade, foreign direct investment, migration, the Internet, and other channels are critical for the transmission of knowledge and growth and form macroeconomic linkages. But how much knowledge is transmitted to a co...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/580411526052786851/Multidimensional-connectivity-benefits-risks-and-policy-implications-for-Europe-and-Central-Asia http://hdl.handle.net/10986/29844 |
| Summary: | International connections through trade,
foreign direct investment, migration, the Internet, and
other channels are critical for the transmission of
knowledge and growth and form macroeconomic linkages. But
how much knowledge is transmitted to a country is not only
the result of the overall level of connectivity, but also to
whom a country is connected, as well as how these
connections complement each other. For example, being
well-connected to an economy with wide-reaching global
connections is likely to be a stronger conduit for knowledge
transfers than being connected to an isolated economy.
Likewise, connections are likely to complement each other.
For example, ecommerce is often seen as a benefit of
Internet connectivity, but without transport connectivity,
ecommerce may not amount to much. This wider definition of
connectivity, referred to as multidimensional connectivity,
is broadened and explored in this study as it applies to
Europe and Central Asia. Focusing on countries from the
Europe and Central Asia region, the paper shows that
multidimensional connectivity is an economically and
statistically important determinant of future economic
growth. The paper further discusses the potential risks and
transfer of shocks that can result from cross-country
economic connectivity. Furthermore, it provides some
examples of how policy tools can be designed to leverage the
benefits of connectivity channels and mitigate their risks. |
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