Clément Nedoncelle, Ph.D. (INRA, France)
I estimate the impact of temperature changes on export behavior at the firm level. Using firm-destination-product-year customs data from France, from 1995 to 2009, I estimate the differential trade impact of temperature changes in destination markets . I provide evidence in favor of 3 results both at the microeconomic level and in the aggregate. First, while temperature changes have a negative impact on the average firm-destination export flow, I find that this result is all the more true that the firmis large. Reallocation motives are a good candidate to rationalize this result. Second, the trade-deterring effect of temperatures is larger in sectors with high share of exports made by reallocating firms. Third, exports are relatively more realized by smaller firms in countries that face high temperature changes.