MGEC32H3 Chapter Notes - Chapter 4: Anthony Venables, Ubangi River, Landlocked Country
16 Apr 2016
School
Department
Course
Professor
Document Summary
Realization among economists over the past decade that geography matters. 2 pioneering lines of analysis in researching the importance of geography. Geographic distances b/w places - pioneered by jeff sachs. What happens if countries all start out at the same level but some countries get in first on various opportunities - led by paul krugman and tony venables. Sach"s work suggested that being landlocked clipped hald a percentage point off the growth rate. 38% of ppl living in bottom billion societies are in countries that are landlocked. Tony venables found that cities that were capitals of landlocked countries incurred higher transport costs o o. Costs varied enormously and didn"t depend on distance. The transport costs for a landlocked country depended upon how much its coastal neighbor spent on transport infrastructure. Landlocked countries are essentially hostages to their neighbors: ex: central african republic.
