Existing literature overlooks the spatial dynamics of localised climate shocks such as droughts, floods and extreme temperatures on key economic sectors within and across countries in the Southern African Development Community (SADC).

^{by Batsirai Mazviona, Innocent Bayai and Tafirei Mashamba} 

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.