The economic growth impact of natural disasters in developing countries: Evidence from hurricane strikes in the Central American and Caribbean regions
AbstractIn this paper we investigate the macroeconomic impact of natural disasters in developing countries by examining hurricane strikes in the Central American and Caribbean regions. Our innovation in this regard is to employ a wind field model on hurricane track data to arrive at a more scientifically based index of potential local destruction. This index allows us to identify damages at a detailed geographical level, compare hurricanes' destructiveness, as well as identify the countries that are most affected, without having to rely on potentially questionable monetary loss estimates. Combining our destruction index with macroeconomic data we show that the average hurricane strike caused output to fall by at least 0.83 percentage points in the region, although this depends on controlling for local economic characteristics of the country affected and what time of the year the storm strikes.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 97 (2012)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/devec
Hurricanes; Economic growth;
Find related papers by JEL classification:
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- H. Yilmazkuday, 2010. "The effects of currency crises on the long-run growth," Applied Economics Letters, Taylor & Francis Journals, vol. 17(3), pages 209-212.
- Rosenzweig, Mark R & Wolpin, Kenneth I, 1993.
"Credit Market Constraints, Consumption Smoothing, and the Accumulation of Durable Production Assets in Low-Income Countries: Investment in Bullocks in India,"
Journal of Political Economy,
University of Chicago Press, vol. 101(2), pages 223-44, April.
- Rosenzweig, Mark R. & Wolpin, Kenneth I., 1989. "Credit Market Constraints, Consumption Smoothing and the Accumulation of Durable Production Assets in Low-Income Countries: Investments in Bullocks in India," Bulletins 7487, University of Minnesota, Economic Development Center.
- Morduch, J., 1995.
"Income Smoothing and Consumption Smoothing,"
512, Harvard - Institute for International Development.
- Jonathan Morduch, 1995. "Income Smoothing and Consumption Smoothing," Harvard Institute of Economic Research Working Papers 1727, Harvard - Institute of Economic Research.
- Rappaport, Jordan & Sachs, Jeffrey D, 2003. " The United States as a Coastal Nation," Journal of Economic Growth, Springer, vol. 8(1), pages 5-46, March.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Kiviet, Jan F., 1995.
"On bias, inconsistency, and efficiency of various estimators in dynamic panel data models,"
Journal of Econometrics,
Elsevier, vol. 68(1), pages 53-78, July.
- Tom Doan, . "LSDVC: RATS procedure to estimate a dynamic FE model with correction for bias," Statistical Software Components RTS00111, Boston College Department of Economics.
- Raddatz, Claudio, 2005.
"Are external shocks responsible for the instability of output in low income countries?,"
Policy Research Working Paper Series
3680, The World Bank.
- Raddatz, Claudio, 2007. "Are external shocks responsible for the instability of output in low-income countries?," Journal of Development Economics, Elsevier, vol. 84(1), pages 155-187, September.
- Matthew E. Kahn, 2005. "The Death Toll from Natural Disasters: The Role of Income, Geography, and Institutions," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 271-284, May.
- Maxx Dilley & Robert S. Chen & Uwe Deichmann & Arthur L. Lerner-Lam & Margaret Arnold, 2005. "Natural Disaster Hotspots: A Global Risk Analysis," World Bank Publications, The World Bank, number 7376, October.
- Horwich, George, 2000. "Economic Lessons of the Kobe Earthquake," Economic Development and Cultural Change, University of Chicago Press, vol. 48(3), pages 521-42, April.
- Hallegatte, Stephane & Hourcade, Jean-Charles & Dumas, Patrice, 2007. "Why economic dynamics matter in assessing climate change damages: Illustration on extreme events," Ecological Economics, Elsevier, vol. 62(2), pages 330-340, April.
- Kosuke Imai & Jeremy M. Weinstein, 2000. "Measuring the Economic Impact of Civil War," CID Working Papers 51, Center for International Development at Harvard University.
- Toya, Hideki & Skidmore, Mark, 2007.
"Economic development and the impacts of natural disasters,"
Elsevier, vol. 94(1), pages 20-25, January.
- Mark Skidmore & Hideki Toya, 2005. "Economic Development and the Impacts of Natural Disasters," Working Papers 05-04, UW-Whitewater, Department of Economics.
- Albala-Bertrand, J. M., 1993. "Natural disaster situations and growth: A macroeconomic model for sudden disaster impacts," World Development, Elsevier, vol. 21(9), pages 1417-1434, September.
- Yang Dean, 2008.
"Coping with Disaster: The Impact of Hurricanes on International Financial Flows, 1970-2002,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 8(1), pages 1-45, June.
- Dean Yang, 2006. "Coping with Disaster: The Impact of Hurricanes on International Financial Flows, 1970-2002," NBER Working Papers 12794, National Bureau of Economic Research, Inc.
- Nejat Anbarci & Monica Escaleras & Charles A. Register, 2004.
"Earthquake fatalities: the interaction of nature and political economy,"
0415, Florida International University, Department of Economics.
- Anbarci, Nejat & Escaleras, Monica & Register, Charles A., 2005. "Earthquake fatalities: the interaction of nature and political economy," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1907-1933, September.
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
- Bruno, Giovanni S.F., 2005.
"Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models,"
Elsevier, vol. 87(3), pages 361-366, June.
- Giovanni S.F. Bruno, 2004. "Approximating the Bias of the LSDV Estimator for Dynamic Unbalanced Panel Data Models," KITeS Working Papers 159, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2004.
- Ramcharan, Rodney, 2007. "Does the exchange rate regime matter for real shocks? Evidence from windstorms and earthquakes," Journal of International Economics, Elsevier, vol. 73(1), pages 31-47, September.
- Noy, Ilan & Karim, Azreen, 2013. "Poverty, inequality and natural disasters – A survey," Working Paper Series 2974, Victoria University of Wellington, School of Economics and Finance.
- duPont IV, William & Noy, Ilan, 2012.
"What happened to Kobe? A reassessment of the impact of the 1995 earthquake in Japan,"
Working Paper Series
2087, Victoria University of Wellington, School of Economics and Finance.
- William DuPont & Ilan Noy, 2012. "What Happened to Kobe? A Reassessment of the Impact of the 1995 Earthquake in Japan," Working Papers 201204, University of Hawaii at Manoa, Department of Economics.
- Yanos Zylberberg, 2010. "Natural natural disasters and economic disruption," PSE Working Papers halshs-00564946, HAL.
- Doyle, Lisa & Noy, Ilan, 2013. "The short-run nationwide Macroeconomic effects of the Canterbury earthquakes," Working Paper Series 2677, Victoria University of Wellington, School of Economics and Finance.
- Yamamura, Eiji, 2012. "Natural disasters and their long-term effect on happiness: the case of the great Hanshin-Awaji earthquake," MPRA Paper 37505, University Library of Munich, Germany.
- Hayakawa, Kazunobu & Matsuura, Toshiyuki & Okubo, Fumihiro, 2014. "Firm-level impacts of natural disasters on production networks : evidence from a flood in Thailand," IDE Discussion Papers 445, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- Vu, Tam Bang & Noy, Ilan, 2013. "Natural disasters and firms in Vietnam," Working Paper Series 3063, Victoria University of Wellington, School of Economics and Finance.
- Janet Currie & Maya Rossin-Slater, 2012.
"Weathering the Storm: Hurricanes and Birth Outcomes,"
NBER Working Papers
18070, National Bureau of Economic Research, Inc.
- Currie, Janet & Rossin-Slater, Maya, 2013. "Weathering the storm: Hurricanes and birth outcomes," Journal of Health Economics, Elsevier, vol. 32(3), pages 487-503.
- Lynham, J & Noy, I & Page, J, 2012. "The 1960 Tsunami in Hawaii: Long Term Consequences of a Coastal Disaster," Working Paper Series 2389, Victoria University of Wellington, School of Economics and Finance.
- TANAKA Ayumu, 2013. "The Impacts of Natural Disasters on Plants' Growth: Evidence from the Great Hanshin-Awaji (Kobe) Earthquake," Discussion papers 13051, Research Institute of Economy, Trade and Industry (RIETI).
- Vu, Tam Bang & Noy, Ilan, 2013. "Regional Effects of Natural Disasters in China," Working Paper Series 2812, Victoria University of Wellington, School of Economics and Finance.
- Yamamura, Eiji, 2012. "Death tolls from natural disasters: Influence of interactions between fiscal decentralization, institution, and economic development," MPRA Paper 36987, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.