Hurricanes Revisited: Comparative Advantage as a Source of Heterogeneity

Martino Pelli and Jeanne Tschopp

Cahiers de recherche from Departement d'économique de l'École de gestion à l'Université de Sherbrooke

Abstract: There is little consensus in the economic literature on the effects of hurricanes on economic growth. This paper argues that this mixed evidence may result from ignoring the potential for hurricanes to generate heterogeneous impacts within countries. To test this hypothesis, we take advantage of highly disaggregated manufacturing export data over the period 1995- 2005 to examine whether the effect of hurricanes on the pattern of trade depends on productcountry- specific comparative advantage. Using a triple-difference identification strategy, we show evidence of heterogeneous effects: product lines with lower comparative advantage suffer disproportionately more.

Keywords: hurricanes; comparative advantage; trade (search for similar items in EconPapers)
JEL-codes: F14 F18 Q54 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2014-11
New Economics Papers: this item is included in nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:shr:wpaper:14-09

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