Heterogeneous Firms under Regional Temperature Shocks
Exit and Reallocation, with Evidence from Indonesia
Bibliographic Data
| ID | 4361980 |
|---|---|
| Authors | Victoria Wenxin Xie (0000-0003-0144-5143, Santa Clara University, corresponding author) |
| Year | 2024 |
| Volume | 72 |
| Issue | 2 |
| Pages | 659-690 |
| Publication date | 2024-01-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economic Development and Cultural Change (JOURNAL) |
| Journal identifiers | ISSN: 0013-0079 • E-ISSN: 1539-2988 |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/720776 |
| OpenAlex | W4280514772 |
| Language | EN |
| Citations received | 3 |
| References cited | 36 |
Are less productive firms in developing countries disproportionately affected by climate change? Using firm-level data from Indonesia, I find less productive firms are more likely to exit the surveys when temperature rises. Also, there is relative output redistribution to the initially more productive firms. The results are consistent with a heterogeneous firm model that has a skill-biased production function, where heat disproportionately affects unskilled labor productivity. Finally, surviving firms switched to use of more skilled labor and more imported inputs. These results illustrate how climate change affects firms of different initial productivity and how various margins of firm-level adjustment could mitigate such effects
Business · Economic geography · Economics · Monetary economics · Economic Growth and Productivity · Firm Innovation and Growth · Natural Resources and Economic Development
Temperature Shocks and Economic Growth
Temperatures and cyclones strongly associated with economic production in the Caribbean and Central America
Trade Liberalization, Intermediate Inputs, and Productivity
Adaptation to Climate Change
Temperature and the Allocation of Time
Temperature effects on productivity and factor reallocation
On estimating firm-level production functions using proxy variables to control for unobservables
Exceptional exporter performance
Climate Trends and Global Crop Production Since 1980
The Empirics of Firm Heterogeneity and International Trade
Global non-linear effect of temperature on economic production
The Dynamics of Productivity in the Telecommunications Equipment Industry
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
The unpublished manuscript
Networks in the Modern Economy
Climate Shocks and Exports
The Light and the Heat
Robust negative impacts of climate change on African agriculture
International Trade, Technology, and the Skill Premium
The Impact of Temperature on Productivity and Labor Supply
Selling Labor Low
What Do We Learn from the Weather? The New Climate-Economy Literature
"The Missing "Missing Middle
Firms in International Trade
| Citations per year | 1 |
|---|---|
| Citation span | 2023 - 2026 (4) |
| Highly cited | No |