NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Wealth of Nations: Fundamental Forces Versus Poverty Traps

David E. Bloom, David Canning, Jaypee Sevilla

NBER Working Paper No. 8714
Issued in January 2002
NBER Program(s):   EFG

We test the view the large differences in income levels we see across the world are due to differences in underlying characteristics, i.e. fundamental forces, against the alternative that there are poverty traps. Taking geographical variables as fundamental characteristics, we find that we can reject fundamental forces in favor of a poverty trap model with high and low level equilibria. The high level equilibrium state is found to be the same for all countries while income in the low level equilibrium, and the probability of being in the high level equilibrium, are greater in cool, coastal countries with high, year- round, rainfall.

download in pdf format
   (315 K)

email paper

This paper is available as PDF (315 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w8714

Users who downloaded this paper also downloaded these:
Fryer w12364 A Model of Social Interactions and Endogenous Poverty Traps
Agenor and Aizenman w13400 Aid Volatility and Poverty Traps
Bloom, Canning, and Sevilla w8587 The Effect of Health on Economic Growth: Theory and Evidence
Bloom, Canning, and Fink w16705 Implications of Population Aging for Economic Growth
Gorodnichenko and Roland w16368 Culture, Institutions and the Wealth of Nations
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us