Does Export Product Diversification Strategies Reshape the Country’s Resilience against Climate Change? Evidence from CAREC Economies

Abstract

Climate change and environmental degradation have emerged as major issues of the globe in the recent decades that required an immediate solution. To cope with this unavoidable problem, the SDGs-13 goal underscores the significance of the developing adaption measures that decrease its adverse influence and eventually safeguard both environment and society. The country's economic fitness (EF) displays its capability to produce complex goods as well as its ability to diversify its product line, is crucial in handling all types of susceptibilities. This study explores the influence of EF on country’s resilience against climate change in CAREC (Central Asia Regional Economic Cooperation) economies. An inverted N-shaped relationship is found between EF and country’s resilience against climate change in CAREC nations. Further, the study findings remain robust after additions of other covariates such as financial development (FD), economic growth (EG), and foreign direct investment (FDI). The government should stimulate EF through extensive margins in order to boost country’s resilience.