This paper investigates how geographic endowments such as tropical location, disease environment, and crop availability influence economic development. It tests three hypotheses: (1) geographic endowments directly affect development, (2) geographic endowments affect development through institutions, and (3) policies are the main determinant of development. Using cross-country data, the authors find that geographic endowments influence development through institutions, not directly. They also find that policies do not significantly affect development once institutions are controlled for. The paper begins by discussing the role of geographic endowments in economic development. It notes that countries with tropical locations, high disease prevalence, and limited access to sea or trade routes often have lower levels of economic development. However, it also highlights that these geographic factors may influence development through the institutions that are created in response to them. The paper then discusses the role of institutions in economic development. It argues that institutions, such as legal systems, property rights, and political stability, are crucial for economic development. It notes that colonial history has had a lasting impact on the institutions that exist in many countries today. For example, countries that were colonized by European powers often developed extractive institutions that favored the elite and hindered economic development. The paper also discusses the role of policies in economic development. It argues that policies, such as trade openness and fiscal policies, are important for economic development. However, it finds that policies do not significantly affect development once institutions are controlled for. The paper concludes that geographic endowments influence economic development through institutions, not directly. It also finds that policies do not significantly affect development once institutions are controlled for. The paper suggests that the key to economic development is the creation of good institutions that protect property rights, ensure political stability, and promote economic growth.This paper investigates how geographic endowments such as tropical location, disease environment, and crop availability influence economic development. It tests three hypotheses: (1) geographic endowments directly affect development, (2) geographic endowments affect development through institutions, and (3) policies are the main determinant of development. Using cross-country data, the authors find that geographic endowments influence development through institutions, not directly. They also find that policies do not significantly affect development once institutions are controlled for. The paper begins by discussing the role of geographic endowments in economic development. It notes that countries with tropical locations, high disease prevalence, and limited access to sea or trade routes often have lower levels of economic development. However, it also highlights that these geographic factors may influence development through the institutions that are created in response to them. The paper then discusses the role of institutions in economic development. It argues that institutions, such as legal systems, property rights, and political stability, are crucial for economic development. It notes that colonial history has had a lasting impact on the institutions that exist in many countries today. For example, countries that were colonized by European powers often developed extractive institutions that favored the elite and hindered economic development. The paper also discusses the role of policies in economic development. It argues that policies, such as trade openness and fiscal policies, are important for economic development. However, it finds that policies do not significantly affect development once institutions are controlled for. The paper concludes that geographic endowments influence economic development through institutions, not directly. It also finds that policies do not significantly affect development once institutions are controlled for. The paper suggests that the key to economic development is the creation of good institutions that protect property rights, ensure political stability, and promote economic growth.