The Cleansing Effect of Hurricanes
AbstractDo hurricanes have a cleansing effect? To answer this question, we test whether hurricanes lead to a reorganization of exports towards goods with higher comparative advantage. Using manufacturing exports disaggregated at the HS6 level over the period 1995-2005, we find that lower comparative advantage product lines suffer disproportionately more in the aftermath of a hurricane. In particular, our estimates indicate that products in the bottom quartile of the comparative advantage distribution suffer at least 1.5 times more than the most efficient products, located at the upper tail of the distribution, beyond the 75 percentile. Moreover, our results support the predictions of the factor proportion model.
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Bibliographic InfoPaper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 13-04.
Length: 12 pages
Date of creation: Oct 2013
Date of revision:
hurricanes; comparative advantage; trade;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F18 - International Economics - - Trade - - - Trade and Environment
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-15 (All new papers)
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