Shaken, not stirred: the impact of disasters on international trade
AbstractThis paper examines the impact of major disasters on trade flows using a gravity model(170 countries, 1962-2004). As a conservative estimate, an additional disaster reduces imports on average by 0,2% and exports by 0.1%. Despite the apparent persistence of bilateral trade volumes, the impact of catastrophes depends on the democracy level and size of the affected country. In autocracies, exports and imports are significantly reduced: had Togo been struck by a major disaster in 2000, it would have lost 6.8% of its imports and 8.2% of its exports. Democratic countries' exports suffer modest decreases, while imports are hardly affected
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Bibliographic InfoPaper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 06-139.
Length: 40 pages
Date of creation: Jun 2006
Date of revision:
International trade; disasters; gravity model; governance bounds analysis.;
Other versions of this item:
- Martin Gassebner & Alexander Keck & Robert Teh, 2010. "Shaken, Not Stirred: The Impact of Disasters on International Trade," Review of International Economics, Wiley Blackwell, vol. 18(2), pages 351-368, 05.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
- P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
This paper has been announced in the following NEP Reports:
- NEP-AFR-2006-09-16 (Africa)
- NEP-ALL-2006-09-16 (All new papers)
- NEP-INT-2006-09-16 (International Trade)
- NEP-SEA-2006-09-16 (South East Asia)
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