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Natural disasters and firms in Vietnam

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  • Vu, Tam Bang
  • Noy, Ilan

Abstract

This paper investigates the consequences of natural disasters on firms in Vietnam over the period 2000 to 2008. We examine the impacts of natural disasters on firm investment and retail sales. We find evidence of adverse effects of disasters on retail sales accompanied by an increase in firm investment of very similar magnitude. There are important differences across geographical units, with the positive impact on investment unique to large cities and provinces with large urban concentrations. We find that more remote rural areas, especially in the North, experience declines in sales without the mitigating boost to investment in disasters’ aftermath. We also show that the decline in sales is not apparently associated with declines in household incomes.

Suggested Citation

  • Vu, Tam Bang & Noy, Ilan, 2013. "Natural disasters and firms in Vietnam," Working Paper Series 18800, Victoria University of Wellington, School of Economics and Finance.
    • Handle: RePEc:vuw:vuwecf:18800
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    References listed on IDEAS

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    Cited by:

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    3. Pelli, Martino & Tschopp, Jeanne & Bezmaternykh, Natalia & Eklou, Kodjovi M., 2023. "In the eye of the storm: Firms and capital destruction in India," Journal of Urban Economics, Elsevier, vol. 134(C).
    4. Matteo Coronese & Davide Luzzati, 2022. "Economic impacts of natural hazards and complexity science: a critical review," LEM Papers Series 2022/13, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. Etienne ESPAGNE & Yen Boi HA & Kenneth HOUNGBEDJI & Thanh NGO-DUC, 2022. "Effect of typhoons on economic activities in Vietnam: Evidence using satellite imagery," Working Paper 2414ec02-fb7d-4b2e-8bfb-c, Agence française de développement.
    6. Barattieri, Alessandro & Borda, Patrice & Brugnoli, Alberto & Pelli, Martino & Tschopp, Jeanne, 2023. "The short-run, dynamic employment effects of natural disasters: New insights from Puerto Rico," Ecological Economics, Elsevier, vol. 205(C).
    7. Matteo Coronese & Federico Crippa & Francesco Lamperti & Francesca Chiaromonte & Andrea Roventini, 2023. "Raided by the storm: how three decades of thunderstorms shaped U.S. incomes and wages," LEM Papers Series 2023/40, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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