Konferenzbeitrag

Geography vs. Institutions at the Village Level

There is well-known debate about the respective role of geography versus institutions in explaining the long term development of countries. These debates have usually been based on cross country regressions where questions about parameter heterogeneity, unobserved heterogeneity, and endogeneity cannot easily be controlled for. The innovation of Acemoglu, Johnson and Robinson (2001) was to address this last point by using settler morality as an instrument for endegenous institutions and found that this supported their line of reasoning. We believe there is value-added to consider this debate at the micro level within a country as particularly questions of parameter heterogeneity and unobserved heterogeneity are likely to be smaller than between countries. Hence, we examine the determinants of agricultural growth across villages on the Indonesian Island of Sulawesi and find technology adoption to play a crucial role. We show that geography through its effects on migration and institutions is a valid instrument to establish the causal links between institutions and technology adoption as well as technology and agricultural growth.

Sprache
Englisch

Erschienen in
Series: Proceedings of the German Development Economics Conference, Göttingen 2007 ; No. 9

Klassifikation
Wirtschaft
Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Microeconomic Analyses of Economic Development
Property Law
Thema
Geography
land rights
migration
technology adoption
agricultural developement
Indonesia

Ereignis
Geistige Schöpfung
(wer)
Grimm, Michael
Klasen, Stephan
Ereignis
Veröffentlichung
(wer)
Verein für Socialpolitik, Ausschuss für Entwicklungsländer
(wo)
Göttingen
(wann)
2007

Handle
Letzte Aktualisierung
12.07.2024, 13:21 MESZ

Objekttyp

  • Konferenzbeitrag

Beteiligte

  • Grimm, Michael
  • Klasen, Stephan
  • Verein für Socialpolitik, Ausschuss für Entwicklungsländer

Entstanden

  • 2007

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