linkage of geography and development - modern economics

Climate, Coastal Proximity, and Development

Linkages of Geography and Development:

Modern Economic Development

Iris Loterte

25.08.2010

Universidad Catolica del Norte

MAGISTER EN CIENCIA REGIONAL


Prevalent questions:

1. What’ are the issues involved regarding the

importance and linkages of geography on

development.

2. Why Regional Science focuses on these concerns?

3. How important geographic relationship to

economic growth/development?

4. Which role of geographic system could explains

economic variables?

5. How methodology being done? (overview)

6. How significant this new or modern economic

analysis to development, into what extent it is

being applied?


Adam Smith: Father of Economics

…most remembered for his prescription of free market

forces for economic development; emphasized that the

physical geography of a region can influence crucially its

economic performance (Smith, 1976).

• Scottish moral philosopher

• A pioneer of political economics

• Scottish Enlightenment

• The Theory of Moral Sentiments and An

Inquiry into the Nature and Causes of the

Wealth of Nations (Wealth of Nations).


Physical

Geography

Economic

Development

Cross-country differences in

environmental endowment level and growth of per

capital income (GDP)

Population Density and

Demography

Central Issues on Economic performances:

Enormous disparity in economic performance between

rich and poor regions of the world.


Climate zones

Spatial density of economic activity

Proximity

to the sea

(near’ and ‘far’)

Population

density

Temperate

Zones

Non-temperate

zones (Tropics)

Which countries are outperforming among

others? And Why?


Geo-Economic Disparity does exists and persists:

New economic geography: emphasizes interaction of transport costs,

imperfect competition, and increasing returns to scale.

coastal regions

access to sea

trade

geographic location

productivity

specialization

size of the market

openness of markets

costs of transport

Airport facility

Non-coastal

regions


(1) Perspectives on the debate (Hypotheses)

Results of a link from race to development

(racist theory on geographical claims).

Enabling of society to division of labor led by market

institutions

Choice and form of government system

(centralized control to water system, irrigation, etc.)

Climate determining the means of production

(eg. Yeoman farming in temperate region).

Accidental reflections to historical events

Spatial effect on pacing in diffusion of technological

changes (innovations)

Climate might have direct effects on the temperament,

work effort, and social harmony.

The linkages made my geography and climate:


(2) Two principal geo-economic factors:

almost all high-income countries are in the mid- and

high latitudes, while nearly all countries in the

geographic tropics are poor.

coastal economies have generally higher incomes

than landlocked countries and coastal, temperate,

northern hemisphere economies have the highest

economic densities in the world.


The role of spatial comparative advantages


(3) Main GIS-related information:

Regions linked to coasts by ocean-navigable

waterways, are strongly favored in development relative

to the hinterlands.

Landlocked economies may be particularly

disadvantaged by their lack of access to the sea, even

when they are no farther than the interior parts of

coastal economies.

Location advantages are particularly important for

successful economic integration of agriculture and the

food industry.


The role of spatial comparative advantages


Climate effects and economic performance: -An example in tropics-

Intrinsic effects of tropical

ecology on human health.

Agriculture and

productivity

Human physiology

Nutrition level

Infectious disease

Declination of human

productivity

Declination of industrial

productivity

Shortfall in economic

performances

A system for capturing, storing,

checking, integrating,

manipulating, analyzing and

displaying data which are

spatially referenced to the

Earth. “

4 Key Variables:

• Climate zones

• Population

•Navigable Waters/rivers

• GDP Density (per capita)

Life Zones

Navigation Ways and Economic accessibility

Population Density and Economics activity

Water Map of the World

The tropics and health

levels: Malaria/Dengue

Disease

Population Distribution

Leading Economies, 2009

Source:UN-HDReport 2007/08

Gini Coefficient /Income Distribution Index

gracias

linkage of geography and development - modern economics

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