American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
The Global Economics of Water: Is Water a Source of Comparative Advantage?
American Economic Journal: Applied Economics
(pp. 32–48)
(Complimentary)
Abstract
With newly available data, I investigate to what extent countries' international trade exploits the very uneven water resources on a global scale. I find that water is a source of comparative advantage and that relatively water abundant countries export more water-intensive products. Additionally, water contributes significantly less to the pattern of exports than the traditional production factors labor and physical capital. This suggests relatively moderate disruptions to overall trade on a global scale due to changing precipitation in the wake of climate change.Citation
Debaere, Peter. 2014. "The Global Economics of Water: Is Water a Source of Comparative Advantage?" American Economic Journal: Applied Economics 6 (2): 32–48. DOI: 10.1257/app.6.2.32Additional Materials
JEL Classification
- F14 Empirical Studies of Trade
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- O19 International Linkages to Development; Role of International Organizations
- Q15 Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q25 Renewable Resources and Conservation: Water
- Q54 Climate; Natural Disasters; Global Warming