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Tropical Economics

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  • Hsiang, Solomon M
  • Meng, Kyle C

Abstract

Why wealth is systematically lower in the tropics remains a puzzle. We point out that latitude may have fundamental economic consequence because it plays a key role in how countries experience geophysical processes that have economic implications. We demonstrate that annual fluctuations in the El Nino Southern Oscillation (ENSO) leads to hotter and dryer local weather across tropical countries and subsequently to substantial losses in agricultural yields, output, and value-added. If volatility in agricultural production impedes economic growth, the relatively stronger influence of ENSO on the tropics may offer yet another partial explanation for slower historical growth in the tropics.

Suggested Citation

  • Hsiang, Solomon M & Meng, Kyle C, 2015. "Tropical Economics," University of California at Santa Barbara, Recent Works in Economics qt7870h7hc, Department of Economics, UC Santa Barbara.
    • Handle: RePEc:cdl:ucsbrw:qt7870h7hc
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    References listed on IDEAS

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    1. Solomon M. Hsiang & Kyle C. Meng & Mark A. Cane, 2011. "Civil conflicts are associated with the global climate," Nature, Nature, vol. 476(7361), pages 438-441, August.
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    Cited by:

    1. Andrea Bastianin & Alessandro Lanza & Matteo Manera, 2018. "Economic impacts of El Niño southern oscillation: evidence from the Colombian coffee market," Agricultural Economics, International Association of Agricultural Economists, vol. 49(5), pages 623-633, September.
    2. Richard Akresh, 2016. "Climate Change, Conflict, and Children," HiCN Working Papers 221, Households in Conflict Network.
    3. Thomas McGregor & Samuel Wills, 2016. "Surfing A Wave Of Economic Growth," OxCarre Working Papers 170, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.

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