Far-Flung%20Europe:%20What%20is%20the%20Economic%20Impact%20of%20Geography?[e-mail]

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Far-Flung Europe What is the Economic Impact of
Geography?John Luke Gallupjlgallup_at_pdx.edu
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My Path to Geography

• Why are LDCs poor and often slow growing?
• Geographically isolated
• Tropical climate

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The Outermost Regions
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My Path to Geography

• Why are LDCs poor and often slow growing?
• Geographically isolated
• Tropical climate
• Outermost Regions
• Geographically isolated
• Tropical climate (for French regions)
• European institutions and investment

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Cross-Country Evidence

• Geographical isolation
• Access to sea-born trade
• Not distance per se
• Tropical Climate
• Disease, especially malaria
• Low agricultural productivity, especially for
  staples

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Robust Correlates of Growth
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Tropical problems?

• Not agriculture
• Outermost regions are not growing staples
• All have volcanic soils except French Guiana
• Agriculture lt 4 of output (except for Azores,
  10)
• Health
• Not substantial mortality and morbidity due to
  tropical disease
• All malaria-free except for French Guiana
• There is no geography problem to explain for the
  economies of Outermost Regions

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Issues for the Outermost Regions

• Health
• Manufacturing
• Education
• Unemployment

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Manufacturing

• Depressed by transportation costs
• Manufacturing is about 15 of national output
• It is less than half that level in Outermost
  Regions
• A very small part of economy

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Comparative Advantage

• Tourism
• Services tied to networks beyond regions
• Capture benefits of globalization
• Depends on
• Participation in networks
• Education levels

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Education in Outermost Regions

• Highschool dropout rates
• Worst (or close to) of all regions of countries
• Guadeloupe is exception at national average
• French Guiana and Azores are each worst in
  country by large margin
• Enrollment of 17 y.o.'s 10 lower than any other
  region

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