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Weather shocks and firm exports in developing countries

Author

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  • Clément Nedoncelle

    (AgroParisTech, INRAE, Paris-Saclay Applied Economics)

  • Julien Wolfersberger

    (AgroParisTech, INRAE, Paris-Saclay Applied Economics
    Climate Economics Chair, Palais Brongniart)

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.

Suggested Citation

  • Clément Nedoncelle & Julien Wolfersberger, 2025. "Weather shocks and firm exports in developing countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 161(2), pages 743-784, May.
    • Handle: RePEc:spr:weltar:v:161:y:2025:i:2:d:10.1007_s10290-024-00563-3
    DOI: 10.1007/s10290-024-00563-3
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    Cited by:

    1. Clément Nedoncelle, 2025. "PSAE Brief n° 9 - Weather Shock, Heterogeneous Firms and International Trade [PSAE Brief n°9 - Chocs climatiques, firmes hétérogènes et commerce international]," Post-Print hal-04926510, HAL.

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    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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