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

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  • Peter Debaere

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.

Suggested Citation

  • Peter Debaere, 2014. "The Global Economics of Water: Is Water a Source of Comparative Advantage?," American Economic Journal: Applied Economics, American Economic Association, vol. 6(2), pages 32-48, April.
    • Handle: RePEc:aea:aejapp:v:6:y:2014:i:2:p:32-48
    Note: DOI: 10.1257/app.6.2.32
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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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    1. The Global Economics of Water: Is Water a Source of Comparative Advantage? (American Economic Journal: Applied Economics 2014) in ReplicationWiki

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