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Flood Events and Plant Level Trade: A Chinese Experience

Author

Listed:
  • Jasmin Gröschl
  • Alexander Sandkamp
Abstract
We quantify the impact of large flooding events on the plant-level trade of manufacturing firms in China. Constructing a panel data set of more than 685,000 geolocated plants and provincial city and county measures of flooding events derived from precise geolocated monthly flood areas, we show that the impact on production facilities can be considerable, although relatively short-lived. While the number of exporting plants remains below its pre-flood level for at least 12 months, the effect on the distribution of exporter market scope, on the average exporter scale or the sales distribution of plants vanish within a year. Privately owned plants are hit harder than state-owned enterprises, as they continuously produce fewer products, while their export value recovers. Producing products covered by the Chinese Communist’s Party five-year plan tends to insulate firms against the negative effects of floods

Suggested Citation

  • Jasmin Gröschl & Alexander Sandkamp, 2023. "Flood Events and Plant Level Trade: A Chinese Experience," ifo Working Paper Series 389, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:ifowps:_389
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    References listed on IDEAS

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    More about this item

    Keywords

    China; trade; firm heterogeneity; natural disasters;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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