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Geography and institutions: Plausible and implausible linkages

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  • Ola Olsson

Abstract

In recent years, empirical investigations have shown that various aspects of physical geography are closely related to the quality of a country’s economic institutions. For instance, distance from the equator in latitude degrees is positively correlated to both institutional quality and to levels of economic development. In order to reach a better understanding for this type of regularities, this article reviews the growing empirical literature on geography and institutions, as well as a large body of older and newer theoretical works on the social impacts of geography. It is argued that the most plausible candidates for explaining the broadest cross-continental variance in institutional quality are those focusing on historical differences in biogeographical potential for early agriculture and on the importance of disease geography for European colonization strategy. Copyright Springer-Verlag 2005

Suggested Citation

  • Ola Olsson, 2005. "Geography and institutions: Plausible and implausible linkages," Journal of Economics, Springer, vol. 86(1), pages 167-194, December.
  • Handle: RePEc:kap:jeczfn:v:86:y:2005:i:1:p:167-194
    DOI: 10.1007/BF03051804
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    Cited by:

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    6. Hossein Mirshojaeian Hosseini & Shinji Kaneko, 2012. "Spatial Spillover of Governance and Institutional Quality: A Spatial Econometric Approach," IDEC DP2 Series 2-3, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    7. Bleaney, Michael & Dimico, Arcangelo, 2016. "State history, historical legitimacy and modern ethnic diversity," European Journal of Political Economy, Elsevier, vol. 43(C), pages 159-170.
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    More about this item

    Keywords

    geography; institutions; topography; geology; biogeography; climate; development; N40; N50; P33;
    All these keywords.

    JEL classification:

    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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