Economic Geography and International Inequality

Stephen James Redding and Anthony J. Venables ()

International Trade from EconWPA

Abstract: This paper estimates a structural model of economic geography using cross-country data on per capita income, bilateral trade, and the relative price of manufacturing goods. More than 70% of the variation in per capita income can be explained by the geography of access to markets and to sources of supply of intermediate inputs. These results are robust to the inclusion of other geographical, social, and institutional characteristics. The estimated coefficients are consistent with plausible values for the structural parameters of the model. We find quantitatively important effects of distance, access to the coast, and openness on levels of per capita income.

Keywords: Economic; Development; Economic; Geography; International; Trade (search for similar items in EconPapers)
JEL-codes: F12 F14 O10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
Date: Written 2001-04-23
Note: Type of Document - Pdf; prepared on IBM PC Windows 2000; to print on HP/PostScript/Laserjet 6P; pages: 47 ; figures: included
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http://129.3.20.41/eps/it/papers/0103/0103003.pdf (application/pdf)

Related works:
Working Paper: Economic Geography and International Inequality (2000)
Working Paper: Economic Geography and International Inequality (2001)
Journal Article: Economic geography and international inequality (2004)
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