Weather as a Competitive Factor between Local and Foreign Manufacturing Companies in Russia
Research output: Contribution to journal › Article
Globalisation has sparked academic interest in companies’ competitive factors and a myriad of internal and external competitive factors have been studied. However, to our knowledge the weather of the host country has not been under study even though weather has been demonstrated to affect economic activity. This paper utilises a company-level panel data to analyse if weather has an impact on domestic and foreign manufacturing companies’ operations in Russia. Temperature was identified to have a non-linear effect on foreign companies’ revenues, such that a warmer year raises revenues in colder regions while balancing out in warmer regions and actually has a negative effect in the hottest regions. For local Russian companies, we discovered an opposite, but less robust effect. This and home country climate based analysis support the hypothesis that foreign companies benefit from more pleasant weather in the local colder climate while the impact is not so critical for the local companies or foreign companies from countries with similar climate to Russia.
|Journal||Journal of Industry, Competition and Trade|
|Early online date||7 Jan 2016|
|Publication status||Published - Dec 2016|
|MoE publication type||A1 Journal article-refereed|
- climate, weather, competitiveness, Russian regions, foreign companies, manufacturing, foreign direct investments