The Global Economics of Water: Is Water a Source of Comparative Advantage?

Peter Debaere

American Economic Journal: Applied Economics, 2014, vol. 6, issue 2, 32-48

Abstract: With newly available data, I investigate to what extent countries' international trade exploits the very uneven water resources on a global scale. I find that water is a source of comparative advantage and that relatively water abundant countries export more waterintensive products. Additionally, water contributes significantly less to the pattern of exports than the traditional production factors labor and physical capital. This suggests relatively moderate disruptions to overall trade on a global scale due to changing precipitation in the wake of climate change.

JEL-codes: F14 O13 O19 Q15 Q25 Q54 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/app.6.2.32
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Citations: View citations in EconPapers (51)

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