Effects of climate change and agricultural productivity on poverty outcomes in Africa: A system GMM perspective

Chizoba G Okeke & Jonathan E Ogbuabor

Abstract

Climate change presents one of the most pressing challenges of the present time, with far-reaching implications for global economies and human socioeconomic well-being. Africa, in particular, remains susceptible to its effects. This study investigates the effects of climate change and agricultural productivity on selected poverty outcomes and the moderating role of governance institutions in these relationships in Africa, using panel data of 36 African countries spanning a period of 20 years (2001 to 2020) and the system generalised method of moments (GMM) estimation framework. The findings indicate that climate change and agricultural productivity have a significant impact on poverty outcomes across Africa. Furthermore, the findings indicate that the continent’s institutions for governance are not significantly improving the impact of climate change and agricultural productivity on poverty in Africa. This can be attributed to the prevalence of weak institutions in Africa, and their inability to effectively exploit the potential of the continent’s institutions to their fullest. Based on the findings, the study makes some valid policy recommendations for African policy makers and heads of government.