Development

Jessica Baier, Jörg Baten, 19 November 2017

Studies have found that the occurrence of natural resources can increase the risk of civil war and interstate conflict. This column uses data from 50 countries beginning in 1890 to show that silver mining can also have substantial effects on interpersonal violence during peacetime. Across many different countries and periods, an economy's increasing dependence on silver has increased the homicide rate.

Leander Heldring, James Robinson, Sebastian Vollmer, 18 November 2017

The Industrial Revolution is arguably the most important economic event in world history, and successful industrialisation continues to elude many developing countries today. This column argues that an important driver of industrialisation in England was the development of markets that allowed division of labour, innovation and, ultimately, social change. Institutional change, rather than advantageous geography, is the main driver of successful industrialisation in England.

Susanne Frick, Andrés Rodríguez-Pose, 20 October 2017

Big cities have historically been seen as an important prerequisite for a country’s economic growth. In recent decades, however, developing countries have rapidly urbanised, and large cities are increasingly found in relatively poor countries. This column uses a new dataset to revisit the relationship between city size and economic growth. It finds that relatively small cities (with populations under three million) have been more conducive to economic growth, while very large cities are only growth-enhancing in countries with a very large urban population.

Matias Busso, Julian Cristia, Diana Hincapié, Julián Messina, Laura Ripani, 16 October 2017

Skills-development policies are needed in Latin America and the Caribbean to close the region’s productivity gap with the rest of the world, and at the same time help close the gap between those who began life with and without advantages or opportunities. This column presents the new IADB flagship report, which aims to help governments address these issues by providing detailed, evidence-based analysis of what works and what doesn’t.

Alejandro Cuñat, Robert Zymek, 15 October 2017

A large portion of international income differences remains poorly understood. It is traditionally attributed to cross-country differences in total factor productivity, which cannot be measured directly. This column argues that the importance of total factor productivity has been overstated because differences in countries’ patterns of international linkages have been overlooked. Using input-output data for 40 countries, it shows how the assumption that economies are closed has led traditional development accounting to overestimate total factor productivity.

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