The spatial dynamics of climate shock impacts in SADC: a focus on selected economic sectors (WP/26/01)

The spatial dynamics of climate shock impacts in SADC Therefore, we analyse the direct and spillover effects of climate shocks on sector performance in the short and long run, considering the interdependencies of SADC countries. We use economic and climate shock datasets from 2010 to 2022. Specifically, we look at the agricultural, manufacturing, mining, energy, tourism and financial sectors. By using spatial Durbin and spatial autoregressive models, we test whether climate shocks in one SADC country can cause long-lasting effects on economic sector performance in neighbouring countries. We provide insights to inform policy development in the SADC region.