Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264392 
Year of Publication: 
2022
Series/Report no.: 
ZEW Discussion Papers No. 22-035
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
Abstract: 
We examine how the adverse impacts of weather shocks are distributed through the trade network. Exploiting a rich, theoretically derived, fixed effects structure, we find significant negative short-run effects of high temperature on exports. A month with an average temperature above 30 êC implies export losses of around three percent. These effects are increasing in the labour-intensity of exports. Using our structural Gravity model, we assess the general equilibrium incidence of these temperature shocks. We find that equilibrium adjustments reduce the economic costs by around 20 percent, but significant costs arise also for countries not directly exposed to high temperatures.
Subjects: 
International trade
Temperature
Extreme weather
Structural Gravity
JEL: 
F14
F18
Q54
Document Type: 
Working Paper

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