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Climatic differences and Economic Growth across Italian Provinces: First Empirical Evidence

  • Edgardo Sica

    ()

The purpose of this study consists in verifying if climatic differences can help to explain the different economic growths path across Italian provinces. Focusing on literature on economic convergence on one hand, and that on economics of climate on the other, the work depicts how climatic variables can enter into the traditional Solows neoclassical growth model developing two alternative models. Afterwards, it tests whether climatic characteristics actually exert an influence on economic convergence using an original climate dataset composed by average yearly min and max temperatures (C), humidity grade (%), number of frost-days and annual precipitations (mm) for 58 Italian Provinces uniformly distributed over the Peninsula. The results, obtained through the Arellano-Bond GMM estimator, show how some of climatic variables employed in this study actually affect the level of Provincial income.

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Paper provided by Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia in its series Quaderni DSEMS with number 20-2005.

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Date of creation: Oct 2005
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Handle: RePEc:ufg:qdsems:20-2005
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  1. Alessandra Goria & Gretel Gambarelli, 2004. "Economic Evaluation of Climate Change Impacts and Adaptation in Italy," Working Papers 2004.103, Fondazione Eni Enrico Mattei.
  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.
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  7. Andrew D. Mellinger & Jeffrey D. Sachs & John L. Gallup, 1999. "Climate, Water Navigability, and Economic Development," CID Working Papers 24, Center for International Development at Harvard University.
  8. Marinella Terrasi, 1999. "Convergence and divergence across Italian regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 33(4), pages 491-510.
  9. Easterly, William & Levine, Ross, 2003. "Tropics, germs, and crops: how endowments influence economic development," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 3-39, January.
  10. Gundlach, Erich & Matus-Velasco, Ximena, 2000. "Climatic conditions, cultural diversity, and labor productivity," Kiel Working Papers 1015, Kiel Institute for the World Economy (IfW).
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  15. Olsson, Ola & Hibbs Jr., Douglas A., 2000. "Biogeography and Long-Run Economic Development," Working Papers in Economics 26, University of Gothenburg, Department of Economics, revised 11 Aug 2000.
  16. Ram, Rati, 1999. "Tropics and Income: A Longitudinal Study of the U.S. States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 45(3), pages 373-78, September.
  17. Maddison, David & Bigano, Andrea, 2003. "The amenity value of the Italian climate," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 319-332, March.
  18. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," The Quarterly Journal of Economics, Oxford University Press, vol. 117(4), pages 1231-1294.
  19. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
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  21. Cao, Xia, 2003. "Climate change and energy development: implications for developing countries," Resources Policy, Elsevier, vol. 29(1-2), pages 61-67.
  22. Ram, Rati, 1997. "Tropics and economic development: An empirical investigation," World Development, Elsevier, vol. 25(9), pages 1443-1452, September.
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