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dc.titleDynamic Network Determinants of Economic Growth
dc.contributor.authorValencia, Oscar
dc.contributor.authorUribe, Jorge M.
dc.contributor.orgunitCountry Department Central America, Haiti, Mexico, Panama and the Dominican Republic
dc.coverageMexico
dc.coverageCentral America
dc.date.available2026-11-12T00:11:00
dc.date.issue2026-11-12T00:11:00
dc.description.abstractThis study investigates how the structure of national production networks influences long-run economic growth. Using data from the EORA26 Multi-Region Input-Output Database for 187 countries (19912017), we reconstruct annual upstream and downstream sectoral networks and extract detailed topological metrics. We combine machine learning (XGBoost) with SHAP-based interpretability and two-way fixed effects panel regressions to identify and validate key structural determinants. The results show that growth is driven primarily by sector-specific network positions rather than aggregate network geometry at the country level. A pronounced bottleneck effect emerges in the transport sector, where insufficient mediation severely constrains growth. More broadly, strong outbound supply connectivity in key sectors promotes growth, whereas excessive input dependence in certain service sectors is associated with weaker performance. Our findings highlight the importance of structural positioning within production networks for understanding cross-country growth heterogeneity.
dc.format.extent28
dc.identifier.doihttp://dx.doi.org/10.18235/0014606
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Dynamic-Network-Determinants-of-Economic-Growth.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectGross Domestic Product
dc.subjectDevelopment Economics
dc.subjectNetwork Analysis
dc.subjectMachine Learning
dc.subjectMode of Transport
dc.subjectService Provider
dc.subjectEconomy
dc.subjectStrategy
dc.subjectElectricity
dc.subject.jelcodeC67 - Input—Output Models
dc.subject.jelcodeE23 - Production
dc.subject.jelcodeL14 - Transactional Relationships • Contracts and Reputation • Networks
dc.subject.jelcodeL16 - Industrial Organization and Macroeconomics: Industrial Structure and Structural Change • Industrial Price Indices
dc.subject.keywordsProduction networks;Input-output analysis;Network Topology
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-03431
idb.operationRG-T4529
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