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Weather Shocks and Firm Exports in Developing Countries
[Chocs météorologiques et exportations des firmes dans les pays en développement]

Author

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  • Clément Nedoncelle

    (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Julien Wolfersberger

    (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

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, 2024. "Weather Shocks and Firm Exports in Developing Countries [Chocs météorologiques et exportations des firmes dans les pays en développement]," Post-Print hal-03753384, HAL.
    • Handle: RePEc:hal:journl:hal-03753384
    DOI: 10.1007/s10290-024-00563-3
    Note: View the original document on HAL open archive server: https://agroparistech.hal.science/hal-03753384v3
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    References listed on IDEAS

    as
    1. Nicolas Berman & Philippe Martin & Thierry Mayer, 2012. "How do Different Exporters React to Exchange Rate Changes?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(1), pages 437-492.
    2. World Bank, 2016. "World Development Indicators 2016," World Bank Publications - Books, The World Bank Group, number 23969, August.
    3. Fernandes, Ana M. & Freund, Caroline & Pierola, Martha Denisse, 2016. "Exporter behavior, country size and stage of development: Evidence from the exporter dynamics database," Journal of Development Economics, Elsevier, vol. 119(C), pages 121-137.
    4. Kalkuhl, Matthias & Wenz, Leonie, 2020. "The impact of climate conditions on economic production. Evidence from a global panel of regions," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    5. Maximilian Auffhammer & Solomon M. Hsiang & Wolfram Schlenker & Adam Sobel, 2013. "Using Weather Data and Climate Model Output in Economic Analyses of Climate Change," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(2), pages 181-198, July.
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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

    Climate change; Economic development; International trade; Firms Structure;
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