Most economists believe that the poor economic performance of countries located in tropical areas is primarily the result of
A) the hot climate that saps the energy of people in tropical countries.
B) the poor institutional quality in most tropical countries.
C) the lack of natural resources in most tropical countries.
D) the failure of rich countries to provide foreign aid to tropical countries.

Question

Quizplus · Accepted Answer

Most economists argue that poor institutional quality, including corruption, weak rule of law, and unstable political systems, is the primary factor that contributes to poor economic performance in tropical countries. This institutional quality can discourage foreign investment, increase the cost of doing business, and undermine economic growth. Factors such as climate and natural resources do not have as consistent or strong of an impact on economic performance. The failure of rich countries to provide foreign aid is an important issue, but it is not the primary reason for poor economic performance in tropical countries.

Most Economists Believe That the Poor Economic Performance of Countries