Extreme Heat and Exports: Evidence from Chinese Exporters

34 Pages Posted: 7 Nov 2016

See all articles by Chengzheng Li

Chengzheng Li

Institute for Economics and Social Research, Jinan University

Jiajia Cong

The University of Hong Kong - Faculty of Business and Economics

Haiying Gu

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management

Xunyong Xiang

Jinan University - Institute of Industrial Economics

Date Written: November 4, 2016

Abstract

This paper explores the impact of extremely hot days on firm-level exports at monthly frequency. We find robust evidence that firm-level exports decline gradually following a heat strike and do not recover within twenty-four months. Specifically, export losses are negligible in the first three months and accumulates to substantial amount eventually: an additional >30°C day in a given month generates cumulative losses up to 1.67% of a firm’s annual exports twenty-four months later. Negative impact of extreme heat on exports is magnified in private-owned firms and agricultural products. The substantial cumulative effect indicates that exporters may bear productivity losses under heat strikes and full adaptation is infeasible within two years. Our findings have significant implications for economic development and climate change policies.

Keywords: Extreme Heat, Export, Cumulative Effect

JEL Classification: F18, Q54

Suggested Citation

Li, Chengzheng and Cong, Jiajia and Gu, Haiying and Xiang, Xunyong, Extreme Heat and Exports: Evidence from Chinese Exporters (November 4, 2016). Available at SSRN: https://ssrn.com/abstract=2864893 or http://dx.doi.org/10.2139/ssrn.2864893

Chengzheng Li (Contact Author)

Institute for Economics and Social Research, Jinan University ( email )

Guangzhou, 广东省 200052
China
15821856817 (Phone)
15821856817 (Fax)

Jiajia Cong

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

Haiying Gu

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management ( email )

No.535 Fahuazhen Road
Shanghai Jiao Tong University
Shanghai, Shanghai 200052
China

Xunyong Xiang

Jinan University - Institute of Industrial Economics ( email )

Guangdong
China

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