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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
Date of revision:
Handle: RePEc:ufg:qdsems:20-2005
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  1. Mauro, Luciano, 2004. "The macroeconomics of Italy: a regional perspective," Journal of Policy Modeling, Elsevier, vol. 26(8-9), pages 927-944, December.
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  8. 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.
  9. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 1, Center for International Development at Harvard University.
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  13. Alessandra Goria & Gretel Gambarelli, 2004. "Economic Evaluation of Climate Change Impacts and Adaptation in Italy," Working Papers 2004.103, Fondazione Eni Enrico Mattei.
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  17. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
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  19. Erich Gundlach & Ximena Matus-Velasco, 2000. "Climatic Conditions, Cultural Diversity, and Labor Productivity," Kiel Working Papers 1015, Kiel Institute for the World Economy.
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