The Relationship Between Geography, Climate And Economic Performance Through Individual Income Levels

1388 Words6 Pages
1. Introduction
The purpose of the study is to establish and evaluate the relationship between geography, climate and economic performance through individual income levels. This has been very vast area of consideration in the academic community. Therefore, on the basis of extensive literature survey and previous research analytics on similar disciplines, the scope of the present research would be conducting a two-stage econometric estimation, mainly regression to compute the relationship at the municipal level income data per person across a computed set of geographical variables.
Geography and environment has a closer impact on socio-economic development of a region. Historical data has revealed that geography has some effect on shaping the economic history. However, the amount of variance is an important consideration. Tropics are varied by broad climatic zones and economies as well (Torres & Mendez, 2000; 2002, Inter-American Development Bank, 2000). As a result, the research would identify the key geographical and climatic factors from the national database and analyze its relationship with income per person longitudinal data for a time period of 1950 to 2014. This paper will analyze this variance to test and interpret the condition of multicollinearity using a regression analysis, as some geographical factors might be highly correlated impacting the ultimate results.
1.1 Research Questions
In the overview of understanding the dependency of climatic, geographical and
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