Calendrier du 24 septembre 2019
Paris Trade Seminar
Du 24/09/2019 de 14:30 à 16:00
Maison des Sciences Economiques, Université Paris 1, 106-112 boulevard de l’hôpital, 75013 Paris (M° Campo-Formio), salle du 6ème
MEDINA QUISPE Pamela (Toronto)
Capital-Reallocation Frictions and Trade Shocks
écrit avec Andrea Lanteri, Eugene Tan
Applied Economics Lunch Seminar
Du 24/09/2019 de 12:30 à 13:30
Salle R2-01, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
PROVENZANO Sandro (LSE)
Capital City Isolation in Sub-Saharan Africa: The Paradox of the Isolated Poor
We put forward the geographic positioning of areas relative to the political center within the country, the capital city, as an important determinant of economic development in Sub-Saharan Africa. We exploit the fact that African boundaries divide pre-colonial ethnic homelands with similar geographical characteristics to obtain a quasi-random variation in distance to the capital city. Using VIIRS nightlights as a proxy for economic activity, we isolate a negative causal impact of isolation to the capital city on economic performance. In contrast, isolation from other major cities turns out insignificant. This supports the view that distance to the political center is the driving force behind the effects. Regarding the economic link between capital city isolation and economic activity, we document a lower level of public goods provision in isolated areas. However, despite being discriminated against, people in isolated areas, paradoxically, exhibit a higher level of trust in their political leaders.