Working Paper: CEPR ID: DP7531
Authors: Quamrul Ashraf; Oded Galor; Mer Zak
Abstract: This paper exploits cross-country variation in the degree of geographical isolation, prior to the advent of sea-faring and airborne transportation technologies, to examine its impact on the course of economic development across the globe.The empirical investigation establishes that prehistoric geographical isolation has generated a persistent beneficial effect on the process of development and contributed to the contemporary variation in the standard of living across countries.
Keywords: Agglomeration; Development; Globalization; Growth; Isolation
JEL Codes: F15; N7; O10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Geographical isolation (R12) | Economic development (O29) |
| One-week increase in average time required to walk to a country's capital (R41) | Population density in the year 1500 CE (N93) |
| Geographical isolation (R12) | Income per capita in the year 2000 CE (D31) |
| Distance to technological frontier (O49) | Economic development (O29) |
| Geographical isolation (R12) | Diminished technological diffusion (O33) |
| Diminished technological diffusion (O33) | Economic development (O29) |
| Geographical isolation (R12) | Reduced trade (F19) |
| Reduced trade (F19) | Economic development (O29) |