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Precipitation and Economic Growth

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  • Michael Berlemann
  • Daniela Wenzel

Abstract

As the ongoing process of global warming goes along with changes in both mean precipitation and precipitation extremes, the scientific interest in the effects of rainfall on economic prosperity has recently grown significantly. However, the few existing empirical studies of short-run growth effects of precipitation deliver inconclusive results. The medium- and long-run growth perspective is yet mostly unexplored. In this paper we deliver a systematic analysis of the short- and long-run growth effects of rainfall based on a large panel dataset covering more than 150 countries over the period of 1951 to 2013. We find strong and highly robust empirical evidence for long-lasting negative growth effects of rainfall shortages in poor and underdeveloped countries, which are not driven by the subsample of Sub Saharan African countries.

Suggested Citation

  • Michael Berlemann & Daniela Wenzel, 2018. "Precipitation and Economic Growth," CESifo Working Paper Series 7258, CESifo.
    • Handle: RePEc:ces:ceswps:_7258
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    Cited by:

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    2. Wenzel, Daniela, 2018. "Droughts and Corruption," Working Paper 181/2018, Helmut Schmidt University, Hamburg.
    3. Md Mazharul Islam & Majed Alharthi & Md Wahid Murad, 2021. "The effects of carbon emissions, rainfall, temperature, inflation, population, and unemployment on economic growth in Saudi Arabia: An ARDL investigation," PLOS ONE, Public Library of Science, vol. 16(4), pages 1-21, April.
    4. Majid Khan & Abdul Rashid, 2022. "(A)symmetry effects of climate changes on economic growth: a panel data analysis," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(4), pages 571-607, December.
    5. Siriklao Sangkhaphan & Yang Shu, 2020. "Impact of seasonal rainfall on economic growth in Thailand," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(2), pages 1-2.
    6. Daniela Wenzel, 2021. "Droughts and corruption," Public Choice, Springer, vol. 189(1), pages 3-29, October.

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    More about this item

    Keywords

    economic growth; precipitation;

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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