The Role of Geography in Economic Growth

Theoretical Approaches and Empirical Evidences

Abstract

This article discusses the theoretical arguments and empirical evidence presented in favor of the geography hypothesis. The question that arises is whether the strong correlation between geography and per capita income reveals the importance of geographical advantages or disadvantages in explaining the large income per capita differences among countries and if so what are the channels through which geography affects growth.These channels are : climate, food production, health environment, the capacity to mobilize energy resources, and trade and location