Working Paper: CEPR ID: DP5807
Authors: Paola Giuliano; Antonio Spilimbergo; Giovanni Tonon
Abstract: This paper investigates how the measures of genetic distance between populations, which have been used in anthropology and historical linguistics, can be used in economics. What does the correlation between genetic distance and economic variables mean? Using the measure of genetic distance, a newly-collected database on transport costs, as well as more refined measures of geography within Europe, we show that i) geography explains both genetic distance and transportation costs between European countries, and ii) genetic distance does not explain economic outcomes once we control for geography. We conclude that genetic distance in economics capture transportation costs between countries and not cultural differences.
Keywords: Cultural Economics; Genetics; Geography; Trade; Transport Costs
JEL Codes: F10; Z10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Geography (R12) | Genetic Distance (C29) |
| Geography (R12) | Transportation Costs (L91) |
| Genetic Distance (C29) | Trade (F19) |
| Transportation Costs (L91) | Trade (F19) |