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Does Temperature Affect Labor Productivity: Cross-Country Evidence

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  • Yildirim, K.
  • Koyuncu, C.

    ()

  • Koyuncu J.
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    Abstract

    This analysis, by using a cross-section data of 111 countries for different samples of 1997-2006 period and Ordinary Least Square (OLS) estimation technique, tests the hypothesis that higher temperature conversely affects labor productivity in a country. The results indicate that there is statistically significant negative relationship between temperature and labor productivity level of a country and this finding remains valid for all samples. Also we identified that temperature level of a country is the second most contributing factor to the explanation of labor productivity level in that particular country. The most contributing factor to labor productivity level is being a high income country.

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    Bibliographic Info

    Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

    Volume (Year): 9 (2009)
    Issue (Month): 1 ()
    Pages:

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    Handle: RePEc:eaa:aeinde:v:9:y:2009:i:1_3

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    Related research

    Keywords: Temperature; Climate; Labor Productivity; Standardized Variables; Cross-Section Study.;

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    References

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    1. Francisco Alcalá & Antonio Ciccone, 2001. "Trade and productivity," Economics Working Papers 580, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2002.
    2. Masters, William A & McMillan, Margaret S, 2001. " Climate and Scale in Economic Growth," Journal of Economic Growth, Springer, vol. 6(3), pages 167-86, September.
    3. Enrico Spolaore & Alberto Alesina & Romain Wacziarg, 2000. "Economic Integration and Political Disintegration," American Economic Review, American Economic Association, vol. 90(5), pages 1276-1296, December.
    4. Lecocq, Franck & Shalizi, Zmarak, 2007. "How might climate change affect economic growth in developing countries ? a review of the growth literature with a climate lens," Policy Research Working Paper Series 4315, The World Bank.
    5. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
    6. Samuel Fankhauser & Richard S.J. Tol, 2001. "On Climate Change And Economic Growth," Working Papers FNU-10, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2002.
    7. Stephen M. Miller & Mukti P. Upadhyay, 1997. "The Effects of Trade Orientation and Human Capital on Total Factor Productivity," Working papers 1997-07, University of Connecticut, Department of Economics.
    8. Sanghoon Ahn & Philip Hemmings, 2000. "Policy Influences on Economic Growth in OECD Countries: An Evaluation of the Evidence," OECD Economics Department Working Papers 246, OECD Publishing.
    9. Steve Dowrick, 1994. "Openness and Growth," RBA Annual Conference Volume, in: Philip Lowe & Jacqueline Dwyer (ed.), International Intergration of the Australian Economy Reserve Bank of Australia.
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