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Economic geography and international inequality

Stephen Redding and Anthony Venables ()

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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: F14 O10 F12 (search for similar items in EconPapers)
Date: 2001-05
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http://eprints.lse.ac.uk/3714/ Open access version. (application/pdf)

Related works:
Journal Article: Economic geography and international inequality (2004) Downloads
Working Paper: Economic Geography and International Inequality (2001) Downloads
Working Paper: Economic Geography and International Inequality (2001) Downloads
Working Paper: Economic Geography and International Inequality (2000) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:3714

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