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Geography and Poverty Traps

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  • Bloom, David E
  • Canning, David
  • Sevilla, Jaypee

Abstract

We test the view that the large differences in income levels we see across the world are due to differences in the intrinsic geography of each country against the alternative view that there are poverty traps. We reject simple geographic determinism in favor of a poverty trap model with high- and low-level equilibria. The high-level equilibrium state is found to be the same for all countries while income in the low-level equilibrium, and the probability of being in the high-level equilibrium, are greater in cool, coastal countries with high, year-round, rainfall. Copyright 2003 by Kluwer Academic Publishers

Suggested Citation

  • Bloom, David E & Canning, David & Sevilla, Jaypee, 2003. "Geography and Poverty Traps," Journal of Economic Growth, Springer, vol. 8(4), pages 355-378, December.
  • Handle: RePEc:kap:jecgro:v:8:y:2003:i:4:p:355-78
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