First Nature Determinants in South American Industrial and Economic Development

Abstract

Following a recent line of research promoted by the Harvard Centre for International Development (and by Jeffrey Sachs in particular), the paper explores the relationship between first nature determinants (i.e.: natural geography) and economic as well as industrial development in South American countries before the implementation of the New Economic Model in the region. The historical and empirical analyses point to a significant influence of geographical characteristics on both the level of a country's economic development (particularly through climate and the degree of accessibility to the sea) and the level of a country's industrialisation (particularly through the population size and the ease of transportation) throughout the region. The results largely confirm the theoretical predictions and may bear significant policy implications for governments as well as for development actors.