How does climate change affect inclusive growth in African countries?
摘要
Climate change has been a reality for economies over the past three decades and has fuelled an abundance of literature. In this article, we examine the effects of climate change on inclusive growth from a sample of 38 African countries. Therefore, we specify and estimate a fixed-effects panel data model using the generalised least squares (GLS) method, the Lewbel 2SLS method and the System Generalised Method of Moments (S-GMM) over the period 1995–2021. Several results emerge. First, the results reveal that climate change, as approximated by temperatures and precipitation, significantly reduces inclusive growth. Second, the robustness of the results is confirmed by taking into account migrant remittances, official development assistance, financial development, private investment, and corruption control. Third, the results reveal a U-shaped relationship between climate change, as measured by temperature and precipitation, and inclusive growth. Finally, the results remain stable after taking into account alternative measures of climate change, such as the climate change vulnerability index. We suggest consolidating climate change mitigation strategies to sustain inclusive growth in African countries.