Climate variability and macroeconomic output in Ethiopia: the analysis of nexus and impact via asymmetric autoregressive distributive lag cointegration method

Ethiopia showed a rapid, yet, none resilient economic growth much threatened by climate variability. In Ethiopia, the adverse effects of variability are stipulated among significant factors constraining its development. There relatively few studies about on Ethiopian macroeconomy. this context, little is known exact ongoing macroeconomic growth. This study intends to examine whether factors, for instance rainfall and temperature, have an effect output Ethiopia. An asymmetric autoregressive distributive lag cointegration method used investigate time-series data years 1950–2014. Diagnostic tests show relevance applied robustness our results. The finds affects Ethiopia’s in long run. Rainfall temperature fluctuation induce negative impacts. A percentage annual decreases gross domestic yield (GDP) up 4.5 percent. short run, particularly changes also profound output. Within such confirmed change impacts, should carry out more adapting mitigating impacts as it presented climate-resilient policies strategies. spite policy contribution results, will motivate further research serve benchmark coming studies.