The Wealth of Subnations: Geography, Institutions, and Within-Country Development

48 Pages Posted: 25 Mar 2013 Last revised: 29 Jun 2014

See all articles by Todd Mitton

Todd Mitton

Brigham Young University - J. Willard and Alice S. Marriott School of Management

Date Written: June 26, 2014

Abstract

I study fundamental determinants of economic development in a new dataset covering 1,867 subnational regions from 101 countries, focusing on within-country effects of geography and institutions. I find that several geographic factors have significant explanatory power for within-country differences in per-capita GDP, including terrain ruggedness, tropical climate, ocean access, temperature range, storm risk, and, to a lesser extent, elevation, malaria risk, and natural resources. I find no evidence of a positive effect of subnational institutions on within-country differences in income, whether institutions are measured by property rights protection, corruption control, law and order, or regulatory efficiency.

Keywords: Economic development, Geography, Institutions

JEL Classification: O11, O13, R11

Suggested Citation

Mitton, Todd, The Wealth of Subnations: Geography, Institutions, and Within-Country Development (June 26, 2014). Available at SSRN: https://ssrn.com/abstract=2239402 or http://dx.doi.org/10.2139/ssrn.2239402

Todd Mitton (Contact Author)

Brigham Young University - J. Willard and Alice S. Marriott School of Management ( email )

Provo, UT 84602
United States
801-422-1763 (Phone)

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