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Land Inequality and the Origin of Divergence and Overtaking in the Growth Process

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Author Info
Oded Galor (Brown University & Hebrew University)
Omer Moav (Hebrew University)
Dietrich Vollrath (Brown University)

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Abstract

This research develops a unified growth theory that captures the transition from the domination of geographical factors\ in the determination of productivity in early stages of development to the domination of institutional factors in mature stages of development. It identifies a novel channel through which favorable geographical conditions that were inherently associated with inequality adversely affected the emergence of institutions that promote human capital accumulation. The research suggests that the distribution of land ownership within and across countries affected the nature of the transition from an agrarian to an industrial economy generating diverging growth patterns across countries. Furthermore, the qualitative change in the role of land in the process of industrialization brought about changes in the ranking of countries in the world income distribution. The basic premise of this research, regarding the negative effect of land inequality on public expenditure on education is established empirically based on cross-state data from the High School Movement in the first half of the 20th century in the US.

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Paper provided by EconWPA in its series GE, Growth, Math methods with number 0410004.

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Length: 44 pages
Date of creation: 05 Oct 2004
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Handle: RePEc:wpa:wuwpge:0410004

Note: Type of Document - pdf; pages: 44
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Keywords: Land Inequality; Institutions; Geography; Human capital accumulation; Growth;

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Find related papers by JEL classification:
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Matteo Cervellati & Uwe Sunde, 2008. "The Economic and Demographic Transition, Mortality, and Comparative Development," University of St. Gallen Department of Economics working paper series 2008 2008-21, Department of Economics, University of St. Gallen. [Downloadable!]
  2. Lennart Erickson & Dietrich Vollrath, 2007. "Land Distribution and Financial System Development," IMF Working Papers 07/83, International Monetary Fund. [Downloadable!]
  3. Michaels, Guy, 2006. "The Long-Term Consequences of Regional Specialization," CEPR Discussion Papers 6028, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  4. Guy Michaels, 2006. "The Long-Term Consequences of Regional Specialization," CEP Discussion Papers dp0766, Centre for Economic Performance, LSE. [Downloadable!]
  5. Rafael Di Tella & Robert MacCulloch, 2004. "Why doesn't Capitalism flow to Poor Countries?," Others 0404005, EconWPA. [Downloadable!]
    Other versions:
  6. Glaeser, Edward L., 2005. "Inequality," Working Paper Series rwp05-056, Harvard University, John F. Kennedy School of Government. [Downloadable!]
  7. Asoni, Andrea, 2008. "Protection of Property Rights and Growth as Political Equilibria," Working Paper Series 737, Research Institute of Industrial Economics. [Downloadable!]
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