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GeoPopulation-Institution Hypothesis: Reconciling American Development Process and Reversal of Fortune within a Unified Growth Framework

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  • Ho, Chi Pui

Abstract

We develop a unified growth theory for the Western Hemisphere during the colonization era. We posit a unified growth model with transatlantic migration and slavery trade to reconcile development in the Thirteen Colonies/United States during AD1700-AD1860. Then we apply the model across American regions/countries, and propose the GeoPopulation-Institution hypothesis to explain divergence: whenever its geographic or political environments relatively favored the buildup of Black slaves (or non-White forced labor), through slavery institution that disincentivized the Blacks to make improvements, a region/country was likely to suffer a reversal of fortune. Geography, population and institution are inseparable in understanding American economic history.

Suggested Citation

  • Ho, Chi Pui, 2016. "GeoPopulation-Institution Hypothesis: Reconciling American Development Process and Reversal of Fortune within a Unified Growth Framework," MPRA Paper 73863, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:73863
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    Keywords

    GeoPopulation-Institution Hypothesis; American Economic History; Reversal of fortune; Unified Growth Theory; Transatlantic Migration and Slavery Trade;

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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