Hydro-climatic thresholds and economic growth reversals in developing countries: an empirical investigation

Cécile Couharde () and Rémi Generoso

No 2015-26, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: In this paper, we exploit the Global Standardized Precipitation and Evapotranspiration Index database to search for a nonlinear relationship between hydro-climatic conditions and economic growth on a sample of developing countries over the period 1980-2011. We evidence a nonlinear link between hydro-climatic conditions and economic growth only in developing agricultural-dependant countries, the impact of hydro-climatic variations being more easily absorbed in more diversified economies. Furthermore, threshold values reached by hydro-climatic conditions that drive changes in the pattern of economic growth are lower than to those corresponding to extreme weather conditions, suggesting a high sensitivity of economic growth in developing agricultural-dependent countries to small fluctuations in weather.

Keywords: Developing countries; Economic growth; Hydro-climatic conditions; Panel Smooth Transtion Regression (PSTR) model. (search for similar items in EconPapers)
JEL-codes: C33 Q54 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2015
New Economics Papers: this item is included in nep-env
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Hydro-climatic thresholds and economic growth reversals in developing countries: an empirical investigation (2015)
Working Paper: Hydro-climatic thresholds and economic growth reversals in developing countries: an empirical investigation (2015)
Working Paper: Hydro-climatic thresholds and economic growth reversals in developing countries: an empirical investigation (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:drm:wpaper:2015-26

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