1.
1.
Absolute Latitude:
Positive
 The closer to the equator (the lower the absolute value of degrees from the equator), the
lower the GDP per capita. This could be due to the fact that hot weather is terrible for growing
agriculture products, and disease is more common among places close to the equator.
2.
Population Density:
Positive
– The higher the population density, the more labor available to produce products and the
higher the GDP per capita.
3.
Average Annual Growth Rate of Population:
Positive
– High annual growth rate could lead to a higher GDP per capita, because more population
means a larger work force to produce products, as well as a higher chance at making innovative
discoveries/technological advances that would further increase production using the same amount of
resources.
4.
Logarithm of Real GDP per Capita:
Negative
 The log shows that for every 1% increase in real GDP per capita, there is a 1% decrease in
the average annual growth rate of real GDP per capita.
5.
Percent of Land Area near Navigable Water:
Positive
– The more land near water, the higher the GDP per capita, because the country has means a
means of transportation to which they can outsource products that would be more expensive to
produce in the country, and produce what they have comparative advantage in. Outsourcing leads to
an increase in returns to scale.
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 Fall '11
 saler
 Statistics, Standard Deviation, per capita, Annual growth rate, dependent var, S.D. dependent var

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