| Summary: | AbstractThe climate significantly varies from eastern to western in China. The purpose of this paper is to analyze how climate affects regional economy in a variety of provinces of China. Regions are divided into three distinct regions based on geographic proximity. We choose 19 provinces, six in the east, five in the middle, and eight in the west. Utilizing data spanning between 1997 and 2019, and the ARDL approach, the result shows that the impact of climate on GDP varies across regions. Precipitation contributes to positive economic growth in the high-income provinces gathering in eastern China, for instance, Guangdong, Zhejiang, and Jiangsu. The impact of temperature mainly occurs in under-developed regions in western China. Overall, this paper analyzes how climate impacts differently in different region of China, suggesting policymakers to implement appropriate strategies in different provinces to limit the negative impacts of climate on economy and achieve sustainable economic development in the long run.
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