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According to Kenneth L. Sokoloff and Stanley L. Engerman, there are two models for economic development. The first model considers land suitable for the growth of sugar and coffee. This sugar and coffee producing economy experiences economies of scale which lead to plantation agriculture and slave labor. Plantation agriculture and slave labor in turn lead to the existence of a small elite, wide inequality, guarded franchise, high tax rates, and limited education. The second model, on the other hand, considers land suitable for wheat. This wheat producing economy allows for small scale farming, the existence of relatively equal distribution of wealth, open franchise, and broad public education. Sokoloff and Engerman conclude that soil available for the production of wheat leads to greater economic growth.
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