Working Paper: CEPR ID: DP8998
Authors: Enrico Spolaore; Romain Wacziarg
Abstract: The empirical literature on economic growth and development has moved from the study of proximate determinants to the analysis of ever deeper, more fundamental factors, rooted in long-term history. A growing body of new empirical work focuses on the measurement and estimation of the effects of historical variables on contemporary income by explicitly taking into account the ancestral composition of current populations. The evidence suggests that economic development is affected by traits that have been transmitted across generations over the very long run. This article surveys this new literature and provides a framework to discuss different channels through which intergenerationally transmitted characteristics may impact economic development, biologically (via genetic or epigenetic transmission) and culturally (via behavioral or symbolic transmission). An important issue is whether historically transmitted traits have affected development through their direct impact on productivity, or have operated indirectly as barriers to the diffusion of productivity-enhancing innovations across populations.
Keywords: economic development; growth; intergenerational transmission; long-run persistence
JEL Codes: N10; O11; O33; O47; O57
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| ancestral composition (Q29) | contemporary income levels (D31) |
| historically transmitted traits (B15) | productivity (O49) |
| historically transmitted traits (B15) | barriers to diffusion of productivity-enhancing innovations (O49) |
| geographic conditions (R12) | productivity (O49) |
| geographic conditions (R12) | economic performance (P17) |
| timing of agricultural transition (N54) | population density (J11) |
| population density (J11) | contemporary income levels (D31) |
| genetic distance (C49) | diffusion of technological innovations (O33) |
| diffusion of technological innovations (O33) | economic performance (P17) |