Geographical Influences on Long-Run Development
We show that geographical factors influence long-run per capita income directly, as well as indirectly, through the quality of institutions. The direct influence of geography on per capita incomes is robust to the inclusion of a sub-Saharan Africa dummy and other tests. We obtain our results by replacing the usual instrument (settlers' mortality (SM)) by stronger instruments for institutional quality (latitude, the share of the country in the temperate climatic zone). We also provide evidence that SM suffers from endogeneity with respect to institutional quality for early colonies, because of its dependence on nineteenth-century mortality data. Copyright 2010 The author 2010. Published by Oxford University Press on behalf of the Centre for the Study of African Economies. All rights reserved. For permissions, please email: firstname.lastname@example.org, Oxford University Press.
Volume (Year): 19 (2010)
Issue (Month): 5 (November)
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