CLIMATE AND SCALE IN ECONOMIC GROWTH

This paper introduces new data on climatic conditions to empirical tests of growth theories. We find that, since 1960, temperate countries have converged towards high levels of income while tropical nations have converged towards various income levels associated with economic scale and the extent of the market. These results hold for a wide range of tests. A plausible explanation is that temperate regions' growth was assisted by their climate, perhaps historically for their transition out of agriculture into sectors whose productivity converges across countries, while tropical countries' growth is relatively more dependent on gains from specialization and trade.


Issue Date:
2001
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/11845
PURL Identifier:
http://purl.umn.edu/11845
Total Pages:
46
Series Statement:
Harvard University Center for International Development Working Paper 48, Revised

Record appears in:



 Record created 2017-04-01, last modified 2020-10-28

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