Climate Change and Economic Growth in Burkina Faso

Climate variability affects agricultural production and thus the rate of economic growth. This research analyzes the effects of climate change on economic growth in Burkina Faso. After analyzing the evolution of climate variables by determining the break periods over 55 years using the Pettit test we estimated the direct and indirect effects of precipitation and temperature on economic growth in Burkina Faso. Using secondary data over a period of 45 years the estimation was made on the basis of a Vector Autoregressive Model including the Vector Error Correction Model (VECM) by the Maximum Likelihood Method. The results show that there was indeed a change in the weather in Burkina Faso in the 1970s when breaks in rainfall and temperature were detected. There is a long-term relationship between temperature rainfall and economic growth in Burkina Faso. Furthermore rainfall has a positive direct and indirect effect on economic growth in Burkina Faso and temperature has a negative effect.