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Islands As `Bad' Geography. Insularity, Connectedness, Trade Costs And Trade, Luca De Benedictis, Anna Maria Pinna
Islands As `Bad' Geography. Insularity, Connectedness, Trade Costs And Trade, Luca De Benedictis, Anna Maria Pinna
Luca De Benedictis
In this paper we explore the geographical dimension of insularity, measuring its effect on a comprehensive measure of trade costs (Novy 2012). Controlling for other geographical characteristics, connectedness (spatial proximity) and the role of historical events in shaping modern attitudes towards openness (measured through a quantification of routes descriptions in logbooks between 1750 and 1850), we give evidence that to be an island is not bad per se. Bad geography can be reversed by connectedness and open institutions.