Reconciling Acemoglu and Sachs: geography, institutions and technology
AbstractThis paper attempts to reconcile two models for sustainable economic growth in developing countries. I develop an empirical and theoretical case for how the geographic landscape of a country determines the ease with which it can assimilate foreign technologies and establish institutions favorable to economic growth. I explore the threshold between the seemingly conflicting geographic (Sachs et al.) and institutional (Acemoglu et al.) theories, and economic growth. I do this by developing a technologically determinant, intermediate bifurcation where growth shifts from being geographically to institutionally driven after enough technology has been assimilated. My analysis finds that the rate of technological assimilation is determined by the landscape of a country. As the technology level increases, income level converges toward the level of developed countries. After reaching a certain threshold, however, the primary driver of economic growth appears to shift from geography to institutions.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 33574.
Date of creation: 01 Sep 2010
Date of revision:
Publication status: Published in Journal of International Affairs 2010, Fall/Winter.64(2010): pp. 205-220
Economic Growth; Technology; Geography; Institutions; Bifurcation; Development;
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
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"The Colonial Origins of Comparative Development: An Empirical Investigation,"
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- Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2002.
"Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development,"
NBER Working Papers
9305, National Bureau of Economic Research, Inc.
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- Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers.
- Raghabendra Chattopadhyay & Esther Duflo, 2004. "Women as Policy Makers: Evidence from a Randomized Policy Experiment in India," Econometrica, Econometric Society, vol. 72(5), pages 1409-1443, 09.
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