| ID | 182738 |
| Title Proper | Extreme heat and exports |
| Other Title Information | evidence from Chinese exporters |
| Language | ENG |
| Author | Li, Chengzheng ; Cong, Jiajia ; Yin, Lijuan |
| Summary / Abstract (Note) | Does extreme heat have causal effects on exports? If so, how do the effects evolve? This paper exploits monthly fluctuations in the number of extremely hot days within a city to identify their effects on firm-level exports in that city. We find robust evidence that hot temperatures have persistent adverse effects on firm-level exports. Specifically, export losses gradually arise following a heat shock, beginning from an undetectable impact and eventually accumulating to a large and significant impact. An additional >30 °C day in a month could generate cumulative losses up to 0.83% of a firm's annual exports twenty-four months later. The negative effects of extreme heat are mainly through its adverse impacts on the firm's investment, capital, and production output. Capital-intensive sectors and FDI-related enterprises are among the most affected by high temperatures. Our findings support the “no-recovery” hypothesis after weather extremes and have implications for future climate change policies. |
| `In' analytical Note | China Economic Review Vol. 66, Apr 2021: p.101593 |
| Journal Source | China Economic Review 2021-03 66, 66 |
| Key Words | Climate Change ; China's Exports ; Extreme Heat |