Weather Shocks and Firm Exports in Developing Countries

Chocs météorologiques et exportations des firmes dans les pays en développement

Clément Nedoncelle and Julien Wolfersberger

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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 Structure (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-env, nep-int and nep-inv
Note: View the original document on HAL open archive server: https://agroparistech.hal.science/hal-03753384v3
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Published in Review of World Economics, inPress, ⟨10.1007/s10290-024-00563-3⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03753384

DOI: 10.1007/s10290-024-00563-3

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