Working Paper: CEPR ID: DP7519
Authors: Oded Galor
Abstract: This paper explores the implications of Unified Growth Theory for the origins of existing differences in income per capita across countries. The theory sheds light on three fundamental layers of comparative development. It identifies the factors that have governed the pace of the transition from stagnation to growth and have thus contributed to contemporary variation in economic development. It uncovers the forces that have sparked the emergence of multiple growth regimes and convergence clubs, and it underlines the persistent effects that variations in pre-historical biogeographical conditions have generated on the composition of human capital and economic development across the globe.
Keywords: Comparative Development; Demographic Transition; Diversity; Globalization; Growth; Human Capital; Malthusian Stagnation; Technological Progress
JEL Codes: F40; J10; J13; N0; O11; O14; O15; O33; O40
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| variations in technological progress across countries (O57) | higher income per capita (P17) |
| technological advancements (O33) | demand for human capital (J24) |
| demand for human capital (J24) | decrease in fertility rates (J13) |
| prehistorical biogeographical conditions (N50) | human capital composition (J24) |
| prehistorical biogeographical conditions (N50) | economic development (O29) |
| human capital composition (J24) | higher income per capita (P17) |