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Myths and Realities of Long-run Development: A Look at Deeper Determinants

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  • Lubna Hasan

    (Pakistan Institute of Development Economics, Islamabad)

Abstract

It has long been realised that factor accumulation and technological development are only proximate causes of economic development, and the focus has now shifted to investigating the deeper determinants of economic growth. Two such forces are highlighted in the literature: institutions and geography. However, it remains controversial as to which of these two is the more important. The institutions school assigns primal importance to institutions, whereas the geography school considers geographical factors as the primary determinant of the economic performance of countries. This paper reviews the debate surrounding these deeper determinants of economic performance. It reviews the work of these two schools of thought and their interpretation of the long-run development. The paper then examines the evidence provided by the respective schools in favour of their hypotheses. It concludes in favour of the Institutions hypothesis as the Geography school does not provide a consistent story of long-run development.

Suggested Citation

  • Lubna Hasan, 2007. "Myths and Realities of Long-run Development: A Look at Deeper Determinants," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(1), pages 19-44.
    • Handle: RePEc:pid:journl:v:46:y:2007:i:1:p:19-44
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    Cited by:

    1. M. Idrees Khawaja & Sajawal Khan, 2009. "Reforming Institutions: Where to Begin?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 48(3), pages 241-267.
    2. Hasan, Lubna, 2009. "Disease, Institutions and Underdevelopment," MPRA Paper 17090, University Library of Munich, Germany, revised 03 Sep 2009.
    3. Hasan LUBNA, 2011. "Rule Of Law Legal Development And Economic Growth Perspectives For Pakistan," Journal of Advanced Research in Law and Economics, ASERS Publishing, vol. 2(1), pages 48-59.
    4. Nadeem Ul Haque & Musleh-ud Din & Lubna Hasan, 2007. "Research at PIDE: Key Messages," PIDE Books, Pakistan Institute of Development Economics, number 2007:2.
    5. Sumanjeet, 2015. "Institutions, Transparency, and Economic Growth," Emerging Economy Studies, International Management Institute, vol. 1(2), pages 188-210, November.

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    More about this item

    Keywords

    Institutions; Geography; Long-run Development; Deeper Determinants of Growth;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • N00 - Economic History - - General - - - General
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • 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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