Geography, Cultural Remoteness and Economic Development: A Regional Analysis of the Economic Consequences of Insularity

We study the relationship between economic development, geography and “cultural remoteness” (i.e. distance from the technological frontier(s) driving economic development) at a regional level focusing on the role of “insularity”. The analysis covers all island regions worldwide and documents the presence of economic costs (measured in GDP per capita), due to insularity, in addition to those generally attributed to ‘geographical remoteness’. Cultural remoteness, either measured in terms of linguistic or ethnic distance, is not the only cause that explains these costs.