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Geographical factors, Growth and Divergence

  • Nguyen Thang DAO

    (CORE, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium and Vietnam Centre for Economic and Policy Research (VEPR), Hanoi, Vietnam)

  • Julio DÁVILA

    (CORE, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium and Paris School of Economics, Paris, France)

This paper develops a unied growth model capturing issues of endogenous economic growth, fertility, and technological progress considering the effects of geographical conditions to interpret the long transition from Malthusian stagnation, through demographic transition to modern sustained growth, and the great divergence in GDP per capita across societies. The paper shows how the interplay of size of "land" and its "accessibility" and technological progress play a very important role for an economy to escape Malthusian stagnation and to take off. Thus differences in these geographical factors lead to differences in take off timings, generating great divergence across societies.

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Paper provided by Development and Policies Research Center (DEPOCEN), Vietnam in its series Working Papers with number 17.

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Length: 35 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:dpc:wpaper:1713
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