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Vulnerability to climate change: Are innovative countries in a better position?

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  • Abdelzaher, Dina M.
  • Martynov, Aleksey
  • Abdel Zaher, Angie M.

Abstract

The impact of climate change on organizations and economies remains one of the most significant yet underestimated threats. Although the consequences of climate change have started to gain attention among policy makers, international business research on this issue is lagging behind. Drawing from the knowledge and innovation literatures, we explore the impact of a country’s degree of innovation on its vulnerability to climate change. Using a longitudinal sample of 73 countries for the years of 1998–2013, we examine the impact of innovation, openness to trade, and regulatory quality on a country’s vulnerability to climate change. We find that R&D expenditures as a percentage of GDP (innovation input), openness to trade, and regulatory quality decrease a country’s vulnerability to climate change. We also find that openness to trade moderates the effect of patenting rates (innovation output) on a country’s vulnerability to climate change.

Suggested Citation

  • Abdelzaher, Dina M. & Martynov, Aleksey & Abdel Zaher, Angie M., 2020. "Vulnerability to climate change: Are innovative countries in a better position?," Research in International Business and Finance, Elsevier, vol. 51(C).
    • Handle: RePEc:eee:riibaf:v:51:y:2020:i:c:s0275531918310389
    DOI: 10.1016/j.ribaf.2019.101098
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    2. Aurelien K. Yeyouomo & Simplice A. Asongu, 2024. "Sustainable urbanization and vulnerability to climate change in Africa: Accounting for digitalization and institutional quality," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(1), pages 1188-1216, February.
    3. Dina M. Abdelzaher & Aleksey Martynov, 2023. "The impact of countries' culture norms and innovations on their adaptive capacity to climate change," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1433-1443, June.
    4. Albitar, Khaldoon & Al-Shaer, Habiba & Liu, Yang Stephanie, 2023. "Corporate commitment to climate change: The effect of eco-innovation and climate governance," Research Policy, Elsevier, vol. 52(2).
    5. Alam, Ashraful & Du, Anna Min & Rahman, Mahfuzur & Yazdifar, Hassan & Abbasi, Kaleemullah, 2022. "SMEs respond to climate change: Evidence from developing countries," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    6. Puertas, Rosa & Carracedo, Patricia & Garcia−Mollá, Marta & Vega, Virginia, 2022. "Analysis of the determinants of market capitalisation: Innovation, climate change policies and business context," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    7. Liang, Chao & Wang, Qi, 2023. "The relationship between total factor productivity and environmental quality: A sustainable future with innovation input," Technological Forecasting and Social Change, Elsevier, vol. 191(C).

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