Geography Dictates, But How? Topography, Spatial Concentration and Sectoral Diversification

Mohammad Tarequl Chowdhury, Muhammad Rahman and Mehmet Ulubasoglu

MPRA Paper from University Library of Munich, Germany

Abstract: This study investigates the ways in which terrain ruggedness affects sectoral diversification. A cross-country analysis using data from 142 countries over the period 1970‒2007 documents an inverted U-shaped link between terrain ruggedness and sectoral diversification, which mainly works through the extensive margin of diversification. A within-country analysis based on United States (US) state-level data over the period 1997‒2011 confirms this non-monotonic relationship. The within-country analysis further reveals that an important mechanism through which terrain ruggedness affects sectoral diversification is the spatial concentration of economic activity, as measured by the concentration of satellite-based night lights.

Keywords: sectoral diversification; spatial concentration; extensive margin; intensive margin; terrain ruggedness. (search for similar items in EconPapers)
JEL-codes: O11 R12 (search for similar items in EconPapers)
Date: 2018-05-31
New Economics Papers: this item is included in nep-big, nep-geo, nep-knm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:87245

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