DP7531 Isolation and Development

Author(s): Quamrul H. Ashraf, Oded Galor, Ömer Özak
Publication Date: November 2009
Keyword(s): Agglomeration, Development, Globalization, Growth, Isolation
JEL(s): F15, N7, O10
Programme Areas: International Macroeconomics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=7531

This paper exploits cross-country variation in the degree of geographical isolation, prior to the advent of sea-faring and airborne transportation technologies, to examine its impact on the course of economic development across the globe. The empirical investigation establishes that prehistoric geographical isolation has generated a persistent beneficial effect on the process of development and contributed to the contemporary variation in the standard of living across countries.