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Failed States and Failed Economies: Nationalism and Economic Behavior, 1955-1995

Using data from the Failed State Task Force data set, this paper argues entering onto positive growth paths for income and infrastructure per capita depend upon a nation’s political stability and its geography. A nation’s achieving sustained long-run growth in both variables is essential to its capacity to converge towards countries with high levels of income per capita because high levels of per capita infrastructure are strongly correlated with high levels of income per capita. New nation states seem to face heavy burdens to avoiding negative feedback traps, partly because their youthfulness is associated with political stability; partly because their propinquity to other politically unstable neighbors hampers their capacity to grow through trade and their ability to avert domestic conflict; partly because they tend to be located in the tropics where the incidence of malaria is high.

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File URL: http://www.uvic.ca/socialsciences/economics/assets/docs/econometrics/ewp0506.pdf
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Paper provided by Department of Economics, University of Victoria in its series Econometrics Working Papers with number 0506.

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Length: 35 pages
Date of creation: 26 May 2005
Date of revision:
Handle: RePEc:vic:vicewp:0506
Note: ISSN 1485-6441
Contact details of provider: Postal: PO Box 1700, STN CSC, Victoria, BC, Canada, V8W 2Y2
Phone: (250)721-6197
Fax: (250)721-6214
Web page: http://web.uvic.ca/econ

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  1. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 83-116, February.
  2. Goldin, Claudia, 1998. "America's Graduation from High School: The Evolution and Spread of Secondary Schooling in the Twentieth Century," Scholarly Articles 2664307, Harvard University Department of Economics.
  3. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-96, September.
  4. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
  5. Sachs, Jeffrey D & Warner, Andrew M, 1997. "Fundamental," American Economic Review, American Economic Association, vol. 87(2), pages 184-88, May.
  6. Kenny, Charles, 2005. "Why Are We Worried About Income? Nearly Everything that Matters is Converging," World Development, Elsevier, vol. 33(1), pages 1-19, January.
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