Arbeitspapier

Cultural diversity, geographical isolation, and the origin of the wealth of nations

This research argues that variations in the interplay between cultural assimilation and cultural diffusion have played a significant role in giving rise to differential patterns of economic development across the globe. Societies that were geographically less vulnerable to cultural diffusion benefited from enhanced assimilation, lower cultural diversity, and more intense accumulation of society-specific human capital. Thus, they operated more efficiently with respect to their production-possibility frontiers and flourished in the technological paradigm that characterized the agricultural stage of development. The lack of cultural diffusion and its manifestation in cultural rigidity, however, diminished the ability of these societies to adapt to a new technological paradigm, which delayed their industrialization and, hence, their take-off to a state of sustained economic growth. The theory thus contributes to the understanding of the advent of divergence and overtaking in the process of development. Consistently with the theory, the empirical analysis establishes that (i) geographical isolation prevalent in pre-industrial times (i.e., prior to the advent of airborne transportation technology) has had a persistent negative impact on the extent of contemporary cultural diversity; (ii) pre-industrial geographical isolation had a positive impact on economic development in the agricultural stage but has had a negative impact on income per capita in the course of industrialization; and (iii) cultural diversity, as determined exogenously by pre-industrial geographical isolation, has had a positive impact on economic development in the process of industrialization.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 6319

Klassifikation
Wirtschaft
Macroeconomic Analyses of Economic Development
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Industrialization; Manufacturing and Service Industries; Choice of Technology
Innovation and Invention: Processes and Incentives
Technological Change: Choices and Consequences; Diffusion Processes
One, Two, and Multisector Growth Models
Institutions and Growth
Economywide Country Studies: General
Thema
cultural assimilation
cultural diffusion
cultural diversity
geographical isolation
economic development
agriculture
industrialization
Gesellschaft
Kulturelle Identität
Soziale Beziehungen
Pluralismus
Geographie
Landwirtschaft
Industrialisierung
Entwicklung
Wirtschaftssoziologie
Sozialgeschichte

Ereignis
Geistige Schöpfung
(wer)
Ashraf, Quamrul
Galor, Oded
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2012

Handle
URN
urn:nbn:de:101:1-2012042310329
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Ashraf, Quamrul
  • Galor, Oded
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2012

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