Extreme heat and exports: Evidence from Chinese exporters

Li, Chengzheng; Cong, Jiajia; Yin, Leiming

doi:10.1016/j.chieco.2021.101593

Cited by 14 publications

(12 citation statements)

References 33 publications

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“…The coefficients support the nonlinear relationship between export and temperature of the earlier estimations, since the negative effect increases both regarding magnitude and statistical significance as the distance from the omitted bin increases. The result is consistent with previous findings of the temperature effect on manufacturing output and exports in the United States (Deryugina and Hsiang 2017), China (Zhang et al 2018;Chen and Yang 2019;Li et al 2021), and India (Somanathan et al 2015), and remains similar when excluding the Oil and Gas sector from the sample. Among the additional weather variables added as controls, I find a statistically significant effect only for wind speed, which has a negative association with monthly exports of −1.71 % per m/s increase, all else equal.…”

Section: The Effect On Exportssupporting

confidence: 91%

“…Extreme temperatures are also known to negatively impact cognitive output and performance (Cook and Heyes 2020;Heyes and Saberian 2019;Park et al 2020;Graff Zivin et al 2018). At the firm-level, high temperature has been found to reduce productivity in both capital-intensive and labor-intensive establishments (Cachon et al 2012;Zhang et al 2018;Somanathan et al 2015;Li et al 2021).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…In this equation, the continuous temperature variables are replaced by m − 1 temperature bins, following previous work in the literature (see e.g., Deryugina and Hsiang 2017;Zhang et al 2018;Graff Zivin and Neidell 2014;Deschênes and Greenstone 2011;Chen and Yang 2019;Somanathan et al 2015;Li et al 2021). The temperature variables measure the number of days for a given month t the daily average temperature is realized within the respective bin.…”

Section: Empirical Frameworkmentioning

confidence: 99%

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Temperature and Exports: Evidence from the United States

Karlsson

2021

Environ Resource Econ

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This paper estimates the effect of exogenous short-term temperature changes on the economy of the United States, using high-resolution data on monthly exports which has not been previously exploited in the literature. The detailed disaggregation of U.S. export data into sectors enables a top-down estimation of the net effect of temperature, while also identifying potential mechanisms at the micro level. Using an econometric specification which allows high parametric flexibility, I find significantly negative effects of both high and low temperatures. The magnitude of the effects corresponds to an average reduction of annual U.S. exports by 0.20%, following a uniform 2 $$^{\circ }$$ ∘ C temperature increase. Industry heterogeneity in the temperature effect suggests disparate mechanisms behind hot and cold days, which are important to take into account when estimating the future economic damages of climate change in the United States.

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Section: The Effect On Exportssupporting

confidence: 91%

Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Empirical Frameworkmentioning

confidence: 99%

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Temperature and Exports: Evidence from the United States

Karlsson

2021

Environ Resource Econ

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“…The majority of these articles show that climate variability and extreme weather events negatively affect economic performance (Dell, Jones, and Olken, 2012;Burke et al, 2015;Li et al, 2021, Acevedo et al, 2020Felbermayr and Gröschl, 2013, International Monetary Fund (IMF), 2016. Li et al (2021) demonstrate that hot temperatures have persistent adverse effect on firm's production output in China. Acevedo et al (2020) confirm this negative effect for low-income countries.…”

Section: B Climate Shocks and Economic Growthmentioning

confidence: 99%

“…For Khan et al (2020), extreme weather events negatively affect economic growth through a reduction in foreign direct investment. Climate shocks also lead directly and indirectly to reduction in human factors both in terms of quality and quantity, reducing the productivity and economic performance (Dell et al 2012, Li et al 2021, Acevedo et al 2020. Directly they increase the mortality rate and the morbidity.…”

Section: B Climate Shocks and Economic Growthmentioning

confidence: 99%

How do Climate Shocks Affect the Impact of FDI, ODA and Remittances on Economic Growth?

Drabo¹

2021

IMF Working Papers

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The three main financial inflows to developing countries have largely increased during the last two decades, despite the large debate in the literature regarding their effects on economic growth which is not yet clear-cut. An emerging literature investigates the dependence of their effects on some country characteristics such as human and physical capital constraint, macroeconomic policy and institutional capacity. This paper extends the literature by arguing that climate shocks may undermine the effect of Foreign Direct Investment (FDI), official development assistance (ODA) and migrants' remittances on economic expansion. Based on neoclassical growth framework, the theoretical model indicates that FDI, ODA, and remittances improve economic growth, and the size of the effect increases with good absorptive capacity. However, climate shocks reduce this positive effect of financial flows in developing countries. Using a sample of low and middle-income countries from 1995 to 2018, the empirical investigation confirms the theoretical conclusions. Developing countries should build strong resilience to climate change. Actions are also needed at global level to reduce greenhouse gases emissions, and build strong structural resilience to climate shocks especially in developing countries.

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