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Natural disasters and economic growth in Northeast Brazil: evidence from municipal economies of the Ceará State

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  • de Oliveira, Victor Hugo

Abstract

Based on an unexplored data set on disasters in Brazil, the current study shows that the direct damage of natural disasters reduces the GDP growth rate of municipal economies in Ceará state, Northeast Brazil. The agriculture and service sectors are the most affected economic sectors, while the industrial sector remains unaffected by environmental shocks. Economic growth is particularly responsive to the occurrence of large natural disasters that lead municipalities to declare a state of emergency or public calamity. Regarding public policies, water supply infrastructure increases the resilience of the output growth of services to droughts, whereas disaster microinsurance helps to mitigate the effects of droughts and floods on the economic growth of agriculture in a Brazilian state where family farming is predominant and highly vulnerable to natural disasters.

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  • de Oliveira, Victor Hugo, 2019. "Natural disasters and economic growth in Northeast Brazil: evidence from municipal economies of the Ceará State," Environment and Development Economics, Cambridge University Press, vol. 24(3), pages 271-293, June.
    • Handle: RePEc:cup:endeec:v:24:y:2019:i:03:p:271-293_00
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    Cited by:

    1. Toshihiro Okubo & Eric Strobl, 2021. "Natural disasters, firm survival, and growth: Evidence from the Ise Bay Typhoon, Japan," Journal of Regional Science, Wiley Blackwell, vol. 61(5), pages 944-970, November.
    2. Sass, Karina Simone & Haddad, Eduardo Amaral & Mendiondo, Eduardo Mario, 2023. "Impacts of Droughts on Economic Activities in The São Paulo Metropolitan Area," TD NEREUS 4-2023, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    3. Victor Hugo De Oliveira & João Mário Santos de França & Francisco Mário Viana Martins, 2020. "The influence of local development on the impact of natural disasters in Northeast Brazil: The case of droughts and floods in the state of Ceará," Papers in Regional Science, Wiley Blackwell, vol. 99(4), pages 1019-1043, August.

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