I read this fascinating paper by John Gallup, Jeffrey Sachs and Andrew Mellinger in the International Regional Science Review that spoke about the concept of "GDP density". GDP density was basically calculated by multiplying GDP per capita by the number of people per square kilometre.
Essentially it is a measure of the total amount of economic activity that takes place at different spots on our globe. The results they found were graphically represented in the form of the map below:
Not surprisingly, it looks a whole lot like those satellite pictures of the earth at night
What I found most interesting is the fact that economic activity is clearly is much more intense near oceans, or, if inland, along navigable rivers where transportation by ship is feasible. Temperate climates with adequate rainfall also seem to be extremely important, perhaps for productivity of agriculture.
So I guess the next most logical question is does policy actually have an impact on GDP?? And are cities located closer to rivers/oceans pre-disposed to doing better (and consequently being more entrepreneurial) than those located inland??
Would love to hear your thoughts.
3 comments:
Nice observation.
There is an incredible book I would recommend for this - 2 actually.
1. A Splendid Exchange by William Bernstein (http://www.rohanrajiv.com/blog/?p=465)
2. Guns Germs and Steel by Jared Diamond. (http://www.rohanrajiv.com/blog/?p=512)
I think you'll find them very useful in explaining many of these questions. Both fantastic books.
And thanks so much for getting Disqus, Rohini!! Much appreciated. :D
Thanks Rohan, your little synopsis on 'a splendid exchange' has intrigued me a wee bit more than 'Guns germs and steel'. I am heading to library right now to get myself a copy :)
Yup. Splendid Exchange was incredible! :)
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