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The Impacts of Flooding and Business Activity and Employment: A Spatial Perspective on Small Business

Author

Listed:
  • Quan Sun

    (Independent Researcher)

  • John Mann

    (Department of Agricultural, Food and Resource Economics, College of Agriculture & Natural Resources, Michigan State University, East Lansing, MI 48824, USA†Center for Economic Analysis, Michigan State University, East Lansing, MI 48824, USA)

  • Mark Skidmore

    (Department of Agricultural, Food and Resource Economics, College of Agriculture & Natural Resources, Michigan State University, East Lansing, MI 48824, USA‡Department of Economics, College of Social Science, Michigan State University, East Lansing, MI 48824, USA)

Abstract

Severe flooding events often cause significant damage to an area, including affecting the local economy, disrupting transportation, and damaging infrastructure. While raw statistics offer some understanding of crop and property-related damages, resulting from large-scale floods, we also need to consider the longer-term impacts and recovery within an area and the interaction between adjacent areas during the recovery process. In this paper, we examine the impacts of major and minor flood events on business employment and the number of establishments in different sectors of the economy. While we find that flood events had a negative short-run impact on agricultural services and particularly small establishments, estimations show positive impacts in the service sector. We also identify significant spatial spillovers.

Suggested Citation

  • Quan Sun & John Mann & Mark Skidmore, 2022. "The Impacts of Flooding and Business Activity and Employment: A Spatial Perspective on Small Business," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 8(03), pages 1-22, July.
    • Handle: RePEc:wsi:wepxxx:v:08:y:2022:i:03:n:s2382624x21400038
    DOI: 10.1142/S2382624X21400038
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    Cited by:

    1. Apurba Roy & Ilan Noy, 2023. "Impact of extratropical cyclones, floods, and wildfires on firms’ financial performance in New Zealand," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(4), pages 493-574, October.

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