BUS 082 Lecture Notes - Lecture 22: Allopatric Speciation, Montesquieu, Physical Capital
17 Sep 2020
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Document Summary
Vast differences in economic development across countries of the world. Average income levels in world"s riches and poorest nations differ by a factor greater than 100. Luxembourg"s gdp per capita is ,926. 4 vs. burundi"s . Income per capita in sub-saharn africa is on average 1/15 of income per capita in the usa. *note: these are proximate causes of differences in prosperity. Geography exogenous differences of environment (sachs) Institutions humanly devised rules shaping incentives (acemoglu) Forces of nature as a primary factor in the poverty of nations. Geography, climate and ecology of a society shape its trade opportunities, its technology, and the incentives of its inhabitants. Heat deprives body of vigour and strength. Root of africa"s poverty is its disadvantageous geography. Two main geographical factors influencing growth: latitude and geographical isolation. Considers the share of a country"s population living in a tropical climate. Looks at how this affects key determinants of economic growth (e. g. agricultural productivity, health)
