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Trade effects of climate change: An application to MENA countries

Author

Listed:
  • Nicolas Péridy

    (Université de Toulon (LEAD))

  • Marc Brunetto

    (Université de Toulon (LEAD))

Abstract

This paper tests the relationship between climate and trade of agricultural products in MENA countries, using bilateral data disaggregated at product level. The model includes gravity control variables and addresses the selection bias with disaggregated production variables in a Heckman two-step procedure. Results show that a rise in temperature and a decrease in precipitation significantly reduce exports and increase imports in MENA countries. This raises the question of food security in these countries.

Suggested Citation

  • Nicolas Péridy & Marc Brunetto, 2013. "Trade effects of climate change: An application to MENA countries," Economics Bulletin, AccessEcon, vol. 33(4), pages 2905-2912.
    • Handle: RePEc:ebl:ecbull:eb-13-00270
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I4-P271.pdf
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    References listed on IDEAS

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    1. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2009. "Temperature and Income: Reconciling New Cross-Sectional and Panel Estimates," American Economic Review, American Economic Association, vol. 99(2), pages 198-204, May.
    2. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    3. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
    4. -, 2009. "The economics of climate change," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38679, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. Peter Egger & Michael Pfaffermayr, 2003. "The proper panel econometric specification of the gravity equation: A three-way model with bilateral interaction effects," Empirical Economics, Springer, vol. 28(3), pages 571-580, July.
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    Cited by:

    1. Farhani, Sahbi & Shahbaz, Muhammad & Sbia, Rashid & Chaibi, Anissa, 2014. "What does MENA region initially need: Grow output or mitigate CO2 emissions?," Economic Modelling, Elsevier, vol. 38(C), pages 270-281.

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    More about this item

    Keywords

    trade; climate; agriculture; MENA countries;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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