Paola Giuliano () (International Monetary Fund and IZA Bonn) Antonio Spilimbergo () (International Monetary Fund, CEPR and WDI) Giovanni Tonon () (DFCI, Harvard University)
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This paper investigates how the measures of genetic distance between populations, which have been used in anthropology and historical linguistics, can be used in economics. What does the correlation between genetic distance and economic variables mean? Using the measure of genetic distance, a newly-collected database on transport costs, as well as more refined measures of geography within Europe, we show that i) geography explains both genetic distance and transportation costs between European countries, and ii) genetic distance does not explain economic outcomes once we control for geography. We conclude that genetic distance in economics capture transportation costs between countries and not cultural differences.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
2229.
Find related papers by JEL classification: Z10 - Other Special Topics - - Cultural Economics - - - General F10 - International Economics - - Trade - - - General
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