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Trade And Geography In The Economic Origins Of Islam: Theory And Evidence, Stelios Michalopoulos, Alireza Naghavi, Giovanni Prarolo
Trade And Geography In The Economic Origins Of Islam: Theory And Evidence, Stelios Michalopoulos, Alireza Naghavi, Giovanni Prarolo
Fondazione Eni Enrico Mattei Working Papers
This research examines the economic origins of Islam and uncovers two empirical regularities. First, Muslim countries, virtual countries and ethnic groups, exhibit highly unequal regional agricultural endowments. Second, Muslim adherence is systematically larger along the pre-Islamic trade routes in the Old World. The theory argues that this particular type of geography (i) determined the economic aspects of the religious doctrine upon which Islam was formed, and (ii) shaped its subsequent economic performance. It suggests that the unequal distribution of land endowments conferred differential gains from trade across regions, fostering predatory behavior from the poorly endowed ones. In such an environment …
Spatial Development, Klaus Desmet, Esteban Rossi-Hansberg
Spatial Development, Klaus Desmet, Esteban Rossi-Hansberg
Fondazione Eni Enrico Mattei Working Papers
We present a theory of spatial development. A continuum of locations in a geographic area choose each period how much to innovate (if at all) in manufacturing and services. Locations can trade subject to transport costs and technology diffuses spatially across locations. The result is an endogenous growth theory that can shed light on the link between the evolution of economic activity over time and space. We apply the model to study the evolution of the U.S. economy in the last few decades and find that the model can generate the reduction in the employment share in manufacturing, the increase …