- Title
- The impacts of climate change on trade and foreign direct investment flows
- Creator
- Barua, Suborna
- Date
- 2019
- Type
- Text; Thesis; PhD
- Identifier
- http://researchonline.federation.edu.au/vital/access/HandleResolver/1959.17/171400
- Identifier
- vital:14314
- Identifier
- https://library.federation.edu.au/record=b2848598
- Abstract
- A growing body of climate economics research suggests that climate change affects production, prices, distribution structures, investments and national income. Studies further describe international trade and climate related investments as key activities in climate impact mitigation and adaptation. However, despite its increasing relevance, the empirical link between climate change and international trade and investment remains largely unexplored. This thesis investigates the climate change impacts on trade and foreign direct investment (FDI) flows using static and dynamic panel estimations covering 102 countries. The modelling uses temperature and precipitation variability to separately evaluate changes in international trade from 1962 to 2014, and in FDI inflows from 1995 to 2014. The trade impacts estimations consider exports of total merchandise, agriculture and six agricultural sectors; while controlling for income, comparative advantage, productivity, domestic and trade policies, and climate zones. The FDI impacts modelling evaluates total and sectoral inflows, while controlling for income, market size, infrastructure, openness, financial development, the global financial crisis and climate zones. Results show that climate change significantly affects both exports and FDI inflows. In particular, temperature affects merchandise exports, negatively at the global and developing country level, and positively in high-income countries. Agricultural exports are negatively affected by temperature. At the sectoral level, oil-seeds and dairy are mostly affected. Precipitation effects are limited and mostly negative for agriculture. The FDI world aggregate flows respond mostly positively to both temperature and precipitation, and static estimations indicate a FDI positive response in developing countries. Furthermore, FDI sectoral estimations indicate a differentiated response. Findings could inform the formulation of trade and investment policies, at the national and global level, in consideration to the differential impacts of climate change across sectors, regions and economic status. Furthermore, these estimates could be used in projections considering climate change as a determinant of trade and investment flows.; Doctor of Philosophy
- Publisher
- Federation University Australi
- Rights
- Copyright Suborna Barua
- Rights
- Open Access
- Rights
- This metadata is freely available under a CCO license
- Subject
- Climate change; Trade; Foreign direct investment; Climate economics; Developing countries; Developed countries
- Full Text
- Thesis Supervisor
- Ernesto Valenzuela
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