Weather shocks and firm exports in developing countries

Clément Nedoncelle () and Julien Wolfersberger
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Clément Nedoncelle: AgroParisTech, INRAE, Paris-Saclay Applied Economics

Review of World Economics (Weltwirtschaftliches Archiv), 2025, vol. 161, issue 2, No 10, 743-784

Abstract: Abstract In this paper, we study how weather shocks affect firm-level exports in low and middle income countries. While the impacts are negative on average, we find that large firms are significantly less affected. This feature is robust across sub-samples, specifications and confounding factors. We then examine the aggregate implications of these firm-level effects by studying changes in total exports under different climate scenarios by the end of the century. Results show that the overall trade-deterring effect of future weather conditions would be lower if there were more large firms in low and middle income countries. It suggests that the existing firm-size distribution may increase the aggregate cost of climate change.

Keywords: Climate change; Economic development; International trade; Firms (search for similar items in EconPapers)
JEL-codes: F14 F18 O13 Q56 (search for similar items in EconPapers)
Date: 2025
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Working Paper: Weather Shocks and Firm Exports in Developing Countries (2024)
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DOI: 10.1007/s10290-024-00563-3

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