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Title: Geography and Regional Economic Growth: The high cost of deviating from nature
Author: Albalate, Daniel, 1980-
Bel i Queralt, Germà, 1963-
Mazaira-Font, Ferran
Keywords: Geografia
Creixement econòmic
Economia regional
Economic development
Regional economics
Issue Date: 2020
Publisher: Universitat de Barcelona. Facultat d'Economia i Empresa
Series/Report no: [WP E-IR20/10]
Abstract: We analyze the role of nature and geography in determining economic and social outcomes. We propose a theoretical model relating geography and nature to economic growth, and examine that model using data from NUTS 2 European regions. By doing this, we identify the predictive power of first nature variables to explain regional population distribution. Then we analyze the effects of misadjustment between the actual and predicted distribution of populations on economic performance. Our results indicate that deviating from first-nature outcomes has a significant negative effect on economic growth. Furthermore, we find that departing from natural endowment has a negative effect on social cohesion strategies that harmonize with nature and geography yield better social welfare and human well-being than those policies that conflict with them.
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It is part of: IREA – Working Papers, 2020, IR20/10
Appears in Collections:Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))

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