Beyond Montesquieu - Developing a new framework for climate and growth

Abstract: The thesis sets out to study the correlation between long-run economic growth and climate, through testing two hypotheses. In the first hypothesis Montesquieu’s climate theory is compared to a modern approach, while in the second hypothesis, natural disaster and disease ecology variables are suggested and tested as growth determinants. In the application of multiple regression analysis two significant growth determinants related to climate were found. First, drought decreases productivity in the agricultural sector. Secondly, malaria risk negatively affects the productivity of human capital and disincentivises investment in education.