Determination of the impact of climate change on economic growth in Zimbabwe (1980-2011)

Abstract

This research was aimed at determining the role of climate change on economic growth in Zimbabwe. In addition, the study sought to determine the individual role of global warming and a reduction in rainfall on economic growth in Zimbabwe for the period 1980 to 2011. Climate change was captured through variability of rainfall and temperature. Distributed Lag model was used to regress GDP growth on population growth, human capital, investment and climate variables. The model was chosen based on its ability to capture the overlapping rainfall pattern in Zimbabwe as well as to meet the implications of endogenous growth model, which the study is based. The results showed that rainfall has a positive relationship with economic growth while temperature is an insignificant determinant of economic growth in Zimbabwe. The results show that Zimbabwe is not being severely affected by climate change as found by other studies. Though the effect is minimal, appropriate policies should be put in place to ensure that the economy is not dependent on climate sensitive sectors.