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The economic growth impact of natural disasters in developing countries: Evidence from hurricane strikes in the Central American and Caribbean regions

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  • Strobl, Eric

Abstract

In 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.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 97 (2012)
Issue (Month): 1 ()
Pages: 130-141

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Handle: RePEc:eee:deveco:v:97:y:2012:i:1:p:130-141

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Web page: http://www.elsevier.com/locate/devec

Related research

Keywords: Hurricanes; Economic growth;

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References

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Citations

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Cited by:
  1. 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.
  2. 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.
  3. Yanos Zylberberg, 2010. "Natural natural disasters and economic disruption," PSE Working Papers halshs-00564946, HAL.
  4. 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.
  5. 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.
  6. 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).
  7. 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.
  8. Janet Currie & Maya Rossin-Slater, 2012. "Weathering the Storm: Hurricanes and Birth Outcomes," NBER Working Papers 18070, National Bureau of Economic Research, Inc.
  9. 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.
  10. 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).
  11. 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.
  12. 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.

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