Climate and the Emergence of Global Income Differences

Thomas Andersen, Carl-Johan Dalgaard and Pablo Selaya

The Review of Economic Studies, 2016, vol. 83, issue 4, 1334-1363

Abstract: The latitude gradient in comparative development is a striking fact: as one moves away from the equator, economic activity rises. While this regularity is well known, it is not well understood. Perhaps the strongest correlate of (absolute) latitude is the intensity of ultraviolet radiation (UV-R), which epidemiological research has shown to be a cause of a wide range of diseases. We establish that UV-R is strongly and negatively correlated with economic activity, both across and within countries. We propose and test a mechanism that links UV-R to current income differences via the impact of disease ecology on the timing of the take-off to sustained growth.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:oup:restud:v:83:y:2016:i:4:p:1334-1363.

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