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The effect of climate change on economic growth : evidence from Sub-Saharan Africa
eng
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2016
Wits Business School, University of the Witwatersrand, Johannesburg, South Africa | Kwame Nkrumah University of Science and Technology, Kumasi, Ghana | Garden City University College, Kumasi, Ghana
This study is a contribution to the empirics of climate change and its effect on sustainable economic growth in Sub-Saharan Africa (SSA). Using data on two climate variables: temperature and precipitation, and employing panel cointegration econometric technique of the long- and short-run effects of climate change on growth, we establish that temperatures beyond 24.9 °C would significantly reduce economic performance in SSA. Furthermore, we show that the relationship between real GDP per capita on one hand and temperature on the other is intrinsically nonlinear.
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