Geography and Economic Development

Geography and Economic Development

March 1999 | John Luke Gallup and Jeffrey D. Sachs, with Andrew D. Mellinger
Geography plays a significant role in economic development, influencing income levels, growth rates, and policy choices. John Luke Gallup, Jeffrey D. Sachs, and Andrew Mellinger analyze how geographic factors such as location, climate, and access to trade routes affect economic outcomes. They find that regions with higher transport costs, tropical climates, and high population densities tend to have lower income levels and slower growth. Coastal regions and temperate zones generally have higher incomes due to better access to trade and lower transport costs. Landlocked countries, especially those far from coasts, face significant disadvantages due to limited access to markets and infrastructure challenges. The paper also highlights the relationship between population density and economic development. Coastal areas with high population densities tend to have higher incomes due to increased specialization and division of labor. However, landlocked regions with high population densities may experience lower incomes due to limited access to markets and infrastructure. The study shows that population growth is most rapid in regions least equipped for economic growth, leading to increased migration from hinterlands to coastal areas. Geography also influences economic policy choices. Countries near markets may adopt more open trade policies, while those farther from markets may have more protectionist policies. The paper argues that geography should be integrated into economic growth models, as it has a significant impact on development outcomes. The authors conclude that while economic institutions and policies are important, geography remains a critical factor in determining economic development. The study emphasizes the need for further research on the interaction between geography, economic growth, and policy choices.Geography plays a significant role in economic development, influencing income levels, growth rates, and policy choices. John Luke Gallup, Jeffrey D. Sachs, and Andrew Mellinger analyze how geographic factors such as location, climate, and access to trade routes affect economic outcomes. They find that regions with higher transport costs, tropical climates, and high population densities tend to have lower income levels and slower growth. Coastal regions and temperate zones generally have higher incomes due to better access to trade and lower transport costs. Landlocked countries, especially those far from coasts, face significant disadvantages due to limited access to markets and infrastructure challenges. The paper also highlights the relationship between population density and economic development. Coastal areas with high population densities tend to have higher incomes due to increased specialization and division of labor. However, landlocked regions with high population densities may experience lower incomes due to limited access to markets and infrastructure. The study shows that population growth is most rapid in regions least equipped for economic growth, leading to increased migration from hinterlands to coastal areas. Geography also influences economic policy choices. Countries near markets may adopt more open trade policies, while those farther from markets may have more protectionist policies. The paper argues that geography should be integrated into economic growth models, as it has a significant impact on development outcomes. The authors conclude that while economic institutions and policies are important, geography remains a critical factor in determining economic development. The study emphasizes the need for further research on the interaction between geography, economic growth, and policy choices.
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