Abstract
Economists have historically ignored the relationship between geographical factors and economic growth and development. However researchers in other fields, historians and biologists, have provided detailed and plausible explanations of the connection between geography/climate and economic progress. Recently, economists have also begun to examine the existence of this relationship by studying the effects of climate on agricultural and labour productivity, for example. Using both cross-sectional and panel data sets, studies have been conducted on the specific aspects of climate and weather that may influence economic outcomes. This paper adds to that literature by focusing in particular on the effects of climate as it pertains to temperature and rainfall, using ground station data from the Global Historical Climatology Network over a period of 30 years. The study finds empirical evidence suggesting that higher temperatures are negatively associated with the level of GDP per capita of a country. In addition, countries that have larger ranges of temperature extremes also have higher incomes. The relationship between temperature and GDP per capita growth rates turns out to be more complex but again the evidence indicates that temperature matters. Lastly, the paper discusses evidence that points to the importance of rainfall and stresses the need for further verification to pinpoint the relationship.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.