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Does El Nino Affect Business Cycles

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Author Info
Thanarak Laosuthi (University of Kentucky)
David D. Selover () (Old Dominion University)
Abstract

In this paper we test to see if the El Niño-Southern Oscillation (ENSO) phenomenon has an influence on national business cycles. If El Niño has any effect at all on business cycles and economic growth, one would expect it, at the very least, to affect small, undiversified economies highly dependent on agriculture and fishing. However, we find that while El Niño exhibits some influence on South Africa, Australia, and perhaps India, there is surprisingly little statistically significant effect on GDP growth or on price inflation in the other countries in our sample. Moreover, we see little significant El Niño effect on agricultural commodity prices.

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Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 33 (2007)
Issue (Month): 1 (Winter)
Pages: 21-42
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Handle: RePEc:eej:eeconj:v:33:y:2007:i:1:p:21-42

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Richard M. Adams & Kelly J. Bryant & Bruce A. Mccarl & David M. Legler & James O'Brien & Andrew Solow & Rodney Weiher, 1995. "Value Of Improved Long-Range Weather Information," Contemporary Economic Policy, Western Economic Association International, vol. 13(3), pages 10-19, 07. [Downloadable!] (restricted)
  2. Allan D. Brunner, 2002. "El Niño and World Primary Commodity Prices: Warm Water or Hot Air?," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 176-183, February. [Downloadable!] (restricted)
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  3. Norrbin, Stefan C. & Schlagenhauf, Don E., 1988. "An inquiry into the sources of macroeconomic fluctuations," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 43-70, July. [Downloadable!] (restricted)
  4. Letson, David & McCullough, B.D., 2001. "Enso And Soybean Prices: Correlation Without Causality," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 33(03), December. [Downloadable!]
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