The Library
Unfavorable land endowment, cooperation, and reversal of fortune
Tools
Litina, Anastasia (2013) Unfavorable land endowment, cooperation, and reversal of fortune. Working Paper. Coventry, UK: Department of Economics, University of Warwick. CAGE Online Working Paper Series, Volume 2013 (Number 114).
|
Text (Working paper)
WRAP_114.2013_litina.pdf - Published Version Download (1608Kb) | Preview |
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
Abstract
This research advances the hypothesis that reversal of fortunes in the process of economic development can be traced to the effect of natural land productivity on the desirable level of cooperation in the agricultural sector. In early stages of development, unfavorable land
endowment enhanced the economic incentive for cooperation in the creation of agricultural infrastructure that could mitigate the adverse effect of the natural environment.
Nevertheless, despite the beneficial effects of cooperation on the intensive margin of agriculture,
low land productivity countries lagged behind during the agricultural stage of development. However, as cooperation, and its persistent effect on social capital, have become increasingly important in the process of industrialization, the transition from agriculture to industry among unfavorable land endowment economies was expedited, permitting those economies that lagged behind in the agricultural stage of development,
to overtake the high land productivity economies in the industrial stage of development.
Exploiting exogenous sources of variations in land productivity across countries the research
further explores the testable predictions of the theory. It establishes that: (i) reversal of fortunes in the process of development can be traced to variation in natural
land productivity across countries. Economies characterized by favorable land endowment
dominated the world economy in the agricultural stage of development but were overtaken in the process of industrialization; (ii) lower level of land productivity in the
past is associated with higher levels of contemporary social capital; (iii) cooperation, as reflected by agricultural infrastructure, emerged primarily in places were land was not highly productive and collective action could have diminished the adverse e¤ects of the environment and enhance agricultural output.
Item Type: | Working or Discussion Paper (Working Paper) | ||||
---|---|---|---|---|---|
Alternative Title: | Unfavourable land endowment, cooperation, and reversal of fortune | ||||
Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor |
||||
Divisions: | Faculty of Social Sciences > Economics | ||||
Library of Congress Subject Headings (LCSH): | Industrialization -- Economic aspects, Industrialization -- Social aspects , Economic development, Land use -- Economic aspects, Cooperation | ||||
Series Name: | CAGE Online Working Paper Series | ||||
Publisher: | Department of Economics, University of Warwick | ||||
Place of Publication: | Coventry, UK | ||||
Official Date: | 2013 | ||||
Dates: |
|
||||
Volume: | Volume 2013 | ||||
Number: | Number 114 | ||||
Number of Pages: | 38 | ||||
Status: | Not Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Open Access (Creative Commons) | ||||
Date of first compliant deposit: | 1 August 2016 | ||||
Date of first compliant Open Access: | 1 August 2016 |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |
Downloads
Downloads per month over past year