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Population Diversity, Division of Labor and the Emergence of Trade and State

Author

Listed:
  • Emilio Depetris-Chauvin

    () (Universidad de los Andes)

  • Ömer Özak

    () (Southern Methodist University)

Abstract

This research explores the emergence and prevalence of economic specialization and trade in pre-modern societies. It advances the hypothesis, and establishes empirically that population diversity had a positive causal effect on economic specialization and trade. Based on a novel ethnic level dataset combining geocoded ethnographic and genetic data, this research exploits the exogenous variation in population diversity generated by the ``Out-of-Africa'' migration of anatomically modern humans to causally establish the positive effect of population diversity on economic specialization and the emergence of trade-related institutions, which, in turn, facilitated the historical formation of states. Additionally, it provides suggestive evidence that regions historically inhabited by pre-modern societies with high levels of economic specialization have a larger occupational heterogeneity and are more developed today.

Suggested Citation

  • Emilio Depetris-Chauvin & Ömer Özak, 2015. "Population Diversity, Division of Labor and the Emergence of Trade and State," Departmental Working Papers 1506, Southern Methodist University, Department of Economics.
  • Handle: RePEc:smu:ecowpa:1506
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    References listed on IDEAS

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    Cited by:

    1. Quamrul H. Ashraf & Oded Galor, 2016. "The Macrogenoeconomics of Comparative Development," Department of Economics Working Papers 2016-02, Department of Economics, Williams College, revised Apr 2018.
    2. repec:kap:jecgro:v:23:y:2018:i:2:d:10.1007_s10887-018-9154-6 is not listed on IDEAS
    3. Ömer Özak, 2018. "Distance to the pre-industrial technological frontier and economic development," Journal of Economic Growth, Springer, vol. 23(2), pages 175-221, June.
    4. Faria, Hugo J. & Montesinos-Yufa, Hugo M. & Morales, Daniel R. & Navarro, Carlos E., 2016. "Unbundling the roles of human capital and institutions in economic development," European Journal of Political Economy, Elsevier, vol. 45(S), pages 108-128.

    More about this item

    Keywords

    Economic Specialization; Division of Labor; Trade; State Formation; Population Diversity; Population Heterogeneity; Genetic Diversity; Diversity; Emergence of State; Persistence; Out of Africa.;

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F10 - International Economics - - Trade - - - General
    • N47 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Africa; Oceania
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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