Institution, Human Capital and Economic Development — Comment on Theories of Daron Acemoglu and Edward Glaeser

Abstract

Institution and economy, two fields on which the operation of modern human society depends, and the various elements related to them, have always been the subject of much discussion. Daron Acemoglu argues that institutions lead to a logical chain of causality for economic development, and Edward L. Glaeser argues that it is human capital, not institutions, that lead to economic conditions after regions are colonized. This paper compares its conclusion with the interactive model of geographical development put forward by scholars in different periods, and analyzes its formation, evolution logic, and impact on economic performance. In the aspects of climate, local epidemiology, land quality, geology and landform, geographical location, natural resources, etc., many studies lack the causal logical chain. Therefore, this paper, from the perspective of comparative economics, analyzes the different interaction and iterative effects of these factors on the development of colonial economy in different regions.