Today it is thought that Canaanite civilization is a response to long periods of stable climate interrupted by short periods of climate change. During these periods, Canaanites profited from their intermediary position between the ancient civilisations of the Middle East — Ancient Egypt, Mesopotamia and Minoan Crete — to become city states of merchant princes along the coast, with small kingdoms specializing in agricultural products in the interior. This polarity, between coastal towns and agrarian hinterland, was illustrated in Canaanite mythology by the struggle between the storm god, variously called Teshub (Hurrian) or Ba'al Hadad (Aramaean) and Ya'a, Yaw, Yahu or Yam, god of the sea and rivers. Small walled market towns characterized early Canaanite civilization surrounded by peasant farmers growing a range of local horticultural products, along with commercial growing of olives, grapes for wine, and pistachios, surrounded by extensive grain cropping, predominantly wheat and barley. Harvest in early summer was a season when transhumance nomadism was practiced — shepherds staying with their flocks during the wet season and returning to graze them on the harvested stubble, closer to water supplies in the summer. Evidence of this cycle of agriculture is found in the Gezer Calendar and in the Biblical cycle of the year.
Periods of rapid climate change generally saw a collapse of this mixed Mediterranean farming system; commercial production was replaced with subsistence agriculural foodstuffs; and transhumance pastoralism became a year-round nomadic pastoral activity, whilst tribal groups wandered in a circular pattern north to the Euphrates, or south to the Egyptian delta with their flocks. During the periods of the collapse of Akkad and the First Intermediary Period in Egypt, the Hyksos invasions and the end of the Middle Bronze Age in Babylonia, and the Late Bronze Age collapse, trade through the Canaanite area would dwindle, as Egypt and Mesopotamia withdrew into their isolation. When the climates stabilized, trade would resume firstly along the coast in the area of the Philistine and Phoenician cities. The Philistines, while an integral part of the Canaanite milieu, do not seem to have been ethnically homogenous with the Canaanites; the Hurrians, Hittites, Aramaeans, Moabites, and Ammonites are also considered distinct from generic Canaanites or Amorites, in scholarship or in tradition (although in the Biblical Book of Nations, "Heth", (Hittites) are a son of Canaan). As markets redeveloped, new trade routes that would avoid the heavy tariffs of the coast would develop from Kadesh Barnea, through Hebron, Lachish, Jerusalem, Bethel, Samaria, Shechem, Shiloh through Galilee to Jezreel, Hazor and Megiddo. Secondary Canaanite cities would develop in this region. Further economic development would see the creation of a third trade route from Eilath, Timna, Edom (Seir), Moab, Ammon and thence to Damascus and Palmyra. Earlier states (for example the Philistines and Tyrians in the case of Judah and Israel, for the second route, and Judah and Israel for the third route) tried generally unsuccessfully to control the interior trade.
Eventually, the prosperity of this trade would attract more powerful regional neighbors, such as Ancient Egypt, Assyria, the Babylonians, Persians, Ancient Greeks and Romans, who would attempt to control the Canaanites politically, levying tribute, taxes and tariffs. Often in such periods, thorough overgrazing would result in a climatic collapse and a repeat of the cycle (eg. PPNB, Ghassulian, Uruk, and the Bronze Age cycles already mentioned). The fall of later Canaanite civilization occurred with the incorporation of the area into the Greco-Roman world (as Iudaea province), and after Byzantine times, into the Arab, Ottoman and Abbasid Caliphates. Aramaic, one of the two lingua francas of Canaanite civilization, is still spoken in a number of small Syrian villages, whilst Phoenician Canaanite disappeared as a spoken language in about 100 AD.