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The Fractured-Land Hypothesis

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  • Jesús Fernández-Villaverde
  • Mark Koyama
  • Youhong Lin
  • Tuan-Hwee Sng

Abstract

Patterns of state formation have crucial implications for comparative economic development. Diamond (1997) famously argued that “fractured land” was responsible for China’s tendency toward political unification and Europe’s protracted polycentrism. We build a dynamic model with granular geographical information in terms of topographical features and the location of productive agricultural land to quantitatively gauge the effects of fractured land on state formation in Eurasia. We find that topography alone is sufficient, but not necessary, to explain polycentrism in Europe and unification in China. Differences in land productivity, in particular the existence of a core region of high land productivity in northern China, also deliver the same result. We discuss how our results map into observed historical outcomes, assess how robust our findings are, and analyze the predictions of our model for Africa and the Americas.

Suggested Citation

  • Jesús Fernández-Villaverde & Mark Koyama & Youhong Lin & Tuan-Hwee Sng, 2020. "The Fractured-Land Hypothesis," NBER Working Papers 27774, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:27774
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    3. Kitamura, Shuhei & Lagerlöf, Nils-Petter, 2021. "Cities, Conflict, and Corridors," OSF Preprints cfrzs, Center for Open Science.
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    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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