Why Are Cold Countries Richer Than Hot Countries?
Economics Explained
00:00
The Relationship Between Temperature and GDP Per Capita
The relationship between temperature and GDP per capita gave us an R squared value of 0.09. This means that 9% of a country's prosperity is determined by its temperature. Bahrain, Qatar, the United Arab Emirates, and Singapore are all very rich and very hot. North Korea is very cold and very poor,. It is an example of political instability being a heavier burden than the apparent benefit of a colder climate.
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