Ingrid Dallmann has participated in the 6th International Conference “Economics of Global Interactions: New Perspectives on Trade, Factor Mobility and Development“, organized by the University of Bari “Aldo Moro” and the NHH Norwegian School of Economics that took place in Bari, on 7-8 September 2015. She presented her article “The impact of weather shocks on trade diversification”, co-written with Caroline Gomes Nogueira.
Abstract: The literature on the link between international trade and climate change addresses mainly the impact of trade on greenhouse gas emissions. However, weather shocks associated with climate change may also affect the pattern and volume of international trade flows. This paper aims to analyze how weather shocks affect the diversification of international trade, using income-level breakdowns. The hypothesis is that international trade is likely to be affected by weather shocks that may impact the comparative advantages of a country and lead to shifts in trade patterns. Preliminary results indicate that an increase in average temperature or in temperature shocks will increase the variety of products a country exports, but only in the bottom half of the income distribution. This finding support the hypothesis that countries may adapt to climate change by diversifying their exports.