The poor economic performance of countries located in tropical areas is due to
A)their hot climate.
B)poor institutional quality in these countries.
C)a lack of natural resources.
D)not enough foreign aid.

Question

Quizplus · Accepted Answer

The literature suggests that the poor economic performance of tropical countries is primarily due to poor institutional quality. This includes factors such as corruption, weak property rights protection, and lack of rule of law, which discourage investment and economic growth. Climate and natural resources can also have an impact, but institutional quality seems to be the most significant factor. Foreign aid may help in some cases, but it is not a sufficient solution to address the underlying institutional weaknesses.

The Poor Economic Performance of Countries Located in Tropical Areas