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Climate and Scale in Economic Growth

  • Masters, William A
  • McMillan, Margaret S

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. Copyright 2001 by Kluwer Academic Publishers

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Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 6 (2001)
Issue (Month): 3 (September)
Pages: 167-86

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Handle: RePEc:kap:jecgro:v:6:y:2001:i:3:p:167-86
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  1. Dalton, Timothy J. & A. Masters, William, 1998. "Pasture taxes and agricultural intensification in southern Mali," Agricultural Economics, Blackwell, vol. 19(1-2), pages 27-32, September.
  2. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  3. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 83-116, February.
  4. Masters, William A. & Bedingar, Touba & Oehmke, James F., 1998. "The impact of agricultural research in Africa: aggregate and case study evidence," Agricultural Economics, Blackwell, vol. 19(1-2), pages 81-86, September.
  5. Sebastian Edwards, 1997. "Openness, Productivity and Growth: What Do We Really Know?," NBER Working Papers 5978, National Bureau of Economic Research, Inc.
  6. Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1203-50, November.
  7. Bernard, Andrew B & Jones, Charles I, 1996. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries," American Economic Review, American Economic Association, vol. 86(5), pages 1216-38, December.
  8. R. L. Voortman & B. G. J. S. Sonneveld & M. A. Keyzer, 2000. "African Land Ecology: Opportunities and Constraints for Agricultural Development," CID Working Papers 37, Center for International Development at Harvard University.
  9. David K. Backus & Patrick J. Kehoe & Timothy J. Kehoe, 1992. "In search of scale effects in trade and growth," Staff Report 152, Federal Reserve Bank of Minneapolis.
  10. Kremer, Michael, 1993. "Population Growth and Technological Change: One Million B.C. to 1990," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 681-716, August.
  11. Lilyan E. Fulginiti & Richard K. Perrin, 2005. "LDC Agriculture: Non-parametric Malmquist productivity indexes," Development and Comp Systems 0502025, EconWPA.
  12. Alberto F. Ades & Edward L. Glaeser, 1994. "Evidence on Growth, Increasing Returns and the Extent of the Market," NBER Working Papers 4714, National Bureau of Economic Research, Inc.
  13. Robert J. Barro, 1989. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
  14. Maredia, Mywish K. & Byerlee, Derek & Pee, Peter, 2000. "Impacts of food crop improvement research: evidence from sub-Saharan Africa," Food Policy, Elsevier, vol. 25(5), pages 531-559, October.
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