the impact of climate change on economic growth based on time series evidence, 1969-2016

Background and objectives: climate change is one of the existential threats ofmodern times, which deserves urgent attention by policymakers. the objective of thispaper is to comprehend the impact of climate change on the gambian economy bothin the short and long-run.methods: this paper analyses time series data from 1969 to 2016. the studyincorporated rainfall and temperature as proxies of climate change into the cobb-douglas production function. the augmented dickey-fuller and the phillips-perronstationarity test for unit root found that the growth rate of rainfall is not statisticallysignificant with the mackinnon approximate p-value for z (t) =0.2306. the first lag issignificant at 5% and 10% but has a negative coefficient in the first differential up to thefourth lag. in contrast, the growth rate of temperature is statistically significant with ap-value of 0.0196.findings: the findings revealed that human capital growth is not significantly relatedto economic growth in the gambia. in the long-run, the growth rates of climate changevariables are all statistically significant and associated with a negative impact oneconomic growth. for the short-run, the lag difference of rainfall against its own lag isstatistically significant and has a positive impact on economic growth. the lag differencein the growth rate of the gross domestic product is not statistically significantly relatedto the growth rate of rainfall.conclusion: the gambia is vulnerable to climate change shocks, consequently climatechange will negatively impact economic growth resulting in high unemployment, lowproductivity, and high poverty rate.