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The wealth of subnations: Geography, institutions, and within-country development

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  • Mitton, Todd

Abstract

I study determinants of economic development in a new dataset covering 1867 subnational regions from 101 countries, focusing on within-country effects of geography and institutions. Several geographic factors have significant explanatory power for within-country differences in per-capita GDP, including terrain ruggedness, tropical climate, ocean access, temperature range, storm risk, and natural resources such as oil, diamonds, or iron. Institutions have a significant positive effect on income among subnational regions with greater autonomy, suggesting that strong subnational institutions enhance development when not dominated by national institutions.

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  • Mitton, Todd, 2016. "The wealth of subnations: Geography, institutions, and within-country development," Journal of Development Economics, Elsevier, vol. 118(C), pages 88-111.
  • Handle: RePEc:eee:deveco:v:118:y:2016:i:c:p:88-111
    DOI: 10.1016/j.jdeveco.2015.09.002
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    2. Michael Jetter & Saskia Mösle & David Stadelmann, 2017. "Landlockedness and Economic Development: Analyzing Subnational Panel Data and Exploring Mechanisms," CESifo Working Paper Series 6733, CESifo Group Munich.
    3. Gershman, Boris, 2016. "Witchcraft beliefs and the erosion of social capital: Evidence from Sub-Saharan Africa and beyond," Journal of Development Economics, Elsevier, vol. 120(C), pages 182-208.
    4. repec:eee:ecolet:v:168:y:2018:i:c:p:10-14 is not listed on IDEAS
    5. Areendam Chanda & Dachao Ruan, 2017. "Early Urbanization and the Persistence of Regional Disparities within Countries," Departmental Working Papers 2017-01, Department of Economics, Louisiana State University.
    6. Gershman, Boris & Rivera, Diego, 2018. "Subnational diversity in Sub-Saharan Africa: Insights from a new dataset," Journal of Development Economics, Elsevier, vol. 133(C), pages 231-263.
    7. repec:eee:ecmode:v:76:y:2019:i:c:p:243-259 is not listed on IDEAS
    8. repec:spr:minecn:v:31:y:2018:i:1:d:10.1007_s13563-018-0153-z is not listed on IDEAS
    9. Christophe Muller & Pierre Pecher, 2018. "Transborder Ethnic Kin and Local Prosperity: Evidence from Night-Time Light Intensity in Africa," Working Papers halshs-01801170, HAL.

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    Keywords

    Geography; Institutions; Development;

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