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Climate Shocks and Exports

Author(s)
Olken, Benjamin A.; Jones, Benjamin F.
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Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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Abstract
This paper uses international trade data to examine the effects of climate shocks on economic activity. At the aggregate level, Melissa Dell, Benjamin F. Jones, and Benjamin A. Olken (2008) (hereafter, DJO) have demonstrated that higher temperatures in a given year reduce the growth rate of GDP per capita, but only in poor countries. The analysis of trade data in this paper builds on that finding, with three principal motivations. First, international trade links the fortunes of countries, providing potentially important conduits for geographically limited climatic impacts to have global economic effects. Second, international trade data is the best available source for identifying economic activity worldwide separately by narrowly defined sectors. Examining international trade data, one can thus say more precisely what sectors are affected by climatic changes. Finally, the trade data, collected by the importing country, provides a check on the potentially low-quality national accounts data provided by the home country.
Date issued
2010-05
URI
http://hdl.handle.net/1721.1/60964
Department
Massachusetts Institute of Technology. Department of Economics
Journal
American Economic Review
Publisher
American Economic Association.
Citation
Jones, Benjamin F, and Benjamin A Olken. “Climate Shocks and Exports.” American Economic Review 100.2 (2010): 454-459. © 2011 AEA
Version: Final published version
ISSN
0002-8282

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