Institutions Don't Rule: Direct Effects of Geography on Per Capita Income

Jeffrey D. Sachs

No 9490, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In a series of papers, my colleagues and I have demonstrated that levels of per capita income, economic growth, and other economic and demographic dimensions are strongly correlated with geographical and ecological variables such as climate zone, disease ecology, and distance from the coast. Three recent papers purport to show that the role of geography in explaining cross-country patterns of income per capita operates predominantly or exclusively through the choice of institutions, with little direct effect of geography on income after controlling for the quality institutions. This note shows that malaria transmission, which is strongly affected by ecological conditions, directly affects the level of per capita income after controlling for the quality of institutions.

JEL-codes: O11 P16 (search for similar items in EconPapers)
Date: 2003-02
New Economics Papers: this item is included in nep-dev and nep-geo
Note: EFG IFM
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Citations: View citations in EconPapers (333)

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