Abenwi, S: Economic Impact of Climate Variability

This research investigates the economic impact of climate variability on Banana production in the Cameroon Development Corporation (CDC). The study used a time series analyses to estimate the effects of rainfall, temperature and wind speed variability on banana production. The research also used the Lorenz curve to analyse climate variability over time and a spatial analogue methodology to estimate the effects of climate variability on Banana production in the CDC. Using two structural equations on a 37-years data set, the findings of this research showed that rainfall, temperature and wind speed variability have a significant effect on banana production. It also revealed that climate variability is relatively more significant in determining banana output than capital and labour. A test for structural defects in the model revealed also that there is a sharp increase in rainfall temperature and wind speed variability between 1985 and 2009. As a result, the study recommended irrigation practices to mitigate the adverse effects of the rainfall, temperature and wind speed variability.