The article models the transition from a hunter-gatherer economy to agricultural production, a crucial event in history which made possible the endogenous technological progress that ultimately led to the Industrial Revolution. We further present evidence showing that geographic and initial biogeographic conditions exerted decisive influence on the location and timing of transitions to sedentary agriculture, to complex social organization and, eventually, to modern industrial production. Evidence from a large cross-section of countries indicates that the effects of geography and biogeography on contemporary levels of economic development are remarkably strong, a result that contrasts with several recent studies where the effect runs solely through institutions.
