NBER Working Papers by Giovanni Prarolo

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Working Papers

August 2015Islam, Inequality and Pre-Industrial Comparative Development
with Stelios Michalopoulos, Alireza Naghavi: w21506
This study explores the interaction between trade and geography in shaping the Islamic economic doctrine. We build a model where an unequal distribution of land quality in presence of trade opportunities conferred differential gains from trade across regions, fostering predatory behavior by groups residing in the poorly endowed territories. We show that in such an environment it was mutually beneficial to institute an economic system of income redistribution featuring income transfers in return for safe passage to conduct trade. A commitment problem, however, rendered a merely static redistribution scheme unsustainable. Islam developed a set of dynamic redistributive rules that were self-enforcing, in regions where arid lands dominated the landscape. While such principles fostered the expa...

Published: Michalopoulos, Stelios & Naghavi, Alireza & Prarolo, Giovanni, 2016. "Islam, inequality and pre-industrial comparative development," Journal of Development Economics, Elsevier, vol. 120(C), pages 86-98. citation courtesy of

October 2012Trade and Geography in the Origins and Spread of Islam
with Stelios Michalopoulos, Alireza Naghavi: w18438
In this study we explore the historical determinants of contemporary Muslim representation. Motivated by a plethora of case studies and historical accounts among Islamicists stressing the role of trade for the adoption of Islam, we construct detailed data on pre-Islamic trade routes, harbors, and ports to determine the empirical regularity of this argument. Our analysis—conducted across countries and across ethnic groups within countries—establishes that proximity to the pre-600 CE trade network is a robust predictor of today's Muslim adherence in the Old World. We also show that Islam spread successfully in regions that are ecologically similar to the birthplace of the religion, the Arabian Peninsula. Namely, territories characterized by a large share of arid and semi- arid regions dotte...

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