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The Economic Effects of Geography: Colombia as a Case Study

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  • Juan Mendoza
  • Andrés Rosas

Abstract

This paper quantifies the economic impact of geographical features using Colombian data at the municipal level. We use the proportion of slave population in 1835 as an instrument of current institutions. We find that, controlling for institutional quality, geographical characteristics, such as the percentage of flat terrain, the proximity to the marketplace and the proximity to the main rivers are statistically-significant determinants of income per capita and have large economic effects.

Suggested Citation

  • Juan Mendoza & Andrés Rosas, 2013. "The Economic Effects of Geography: Colombia as a Case Study," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, January.
    • Handle: RePEc:col:000090:010421
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    References listed on IDEAS

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    1. Daniel Berkowitz & Karen Clay, "undated". "Initial Conditions, Institutional Dynamics and Economic Performance: Evidence from the American States," American Law & Economics Association Annual Meetings 1083, American Law & Economics Association.
    2. Masters, William A & McMillan, Margaret S, 2001. "Climate and Scale in Economic Growth," Journal of Economic Growth, Springer, vol. 6(3), pages 167-186, September.
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    4. Jeffrey D. Sachs, 2001. "Tropical Underdevelopment," NBER Working Papers 8119, National Bureau of Economic Research, Inc.
    5. Jairo Núñez & Fabio Sánchez Torres, 2000. "Geography and Economic Development in Colombia: A Municipal Approach," Research Department Publications 3107, Inter-American Development Bank, Research Department.
    6. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    7. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    8. John Luke Gallup & Jeffrey D. Sachs, 2000. "The Economic Burden of Malaria," CID Working Papers 52A, Center for International Development at Harvard University.
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    11. Mr. Arvind Subramanian & Mr. Francesco Trebbi & Mr. Dani Rodrik, 2002. "Institutions Rule: The Primacy of Institutions over Integration and Geography in Economic Development," IMF Working Papers 2002/189, International Monetary Fund.
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    Cited by:

    1. Meisel, Adolfo, 2014. "No Reversal Of Fortune In The Long Run: Geography And Spatial Persistence Of Prosperity In Colombia, 1500-2005," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 32(3), pages 411-428, December.
    2. Adriana Camacho & Emily Conover, 2009. "Manipulation of Social Program Eligibility: Detection, Explanations and Consequences for Empirical Research," Documentos CEDE 6211, Universidad de los Andes, Facultad de Economía, CEDE.
    3. Miriam Bruhn & Francisco Gallego, 2008. "Good, Bad, and Ugly Colonial Activities: Studying Development Across the Americas," Documentos de Trabajo 334, Instituto de Economia. Pontificia Universidad Católica de Chile..
    4. Camilo Restrepo Estrada & Jhonny Moncada & Julieth Parra, 2016. "Valoración de la influencia de la geografía en el desempeno económico de los municipios colombianos," Contexto (Artículos Sobre Economía), Universidad Externado de Colombia, February.
    5. Luz Helena González Nieto, 2007. "Determinantes del crecimiento poblacional de los municipios colombianos 1951- 1993," Documentos de Economía 4238, Universidad Javeriana - Bogotá.

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    More about this item

    Keywords

    Geography; climate; development; institutions.;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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