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Climate and Scale In Economic Growth

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Author Info
William A. Masters
Margaret S. McMillan

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Abstract

This paper introduces new data on climatic conditions to empirical tests of growth theories. We find that, since 1960, temperate countries have converged towards a common high level of income while tropical nations have converged towards various income levels associated with economic scale and the extent of the market. These results 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.

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Paper provided by Center for International Development at Harvard University in its series CID Working Papers with number 48.

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Date of creation: Jun 2000
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Handle: RePEc:wop:cidhav:48

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Related research
Keywords: growth accounting empirical growth models endogenous growth

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Find related papers by JEL classification:
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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This page was last updated on 2008-9-4.

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