Kiel Working Papers, Kiel Institute for World Economics
No 1015:
Climatic Conditions, Cultural Diversity, and Labor Productivity
Erich Gundlach and Ximena Matus-Velasco
Abstract: Countries with the highest labor productivity
overwhelmingly lie in the world's temperate climatic zones far away from
the equator. The question we address is whether climatic conditions as
measured by distance from the equator remain correlated with labor
productivity after other variables are taken into account. We find that
climatic conditions do not have a significant impact on labor productivity
once we control for factor accumulation and cultural diversity within
countries. Our regression results suggest that cultural diversity as
measured by the degree of ethnolinguistic fractionalization may severely
limit economic development in presently poor countries.
Keywords: productivity, climatic conditions, factor accumulation, ethnolinguistic diversity; (follow links to similar papers)
22 pages, December 2000
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