Regional Effects of Natural Disasters in China
AbstractWe examine the effects of natural disasters on income and investment in China. Using detailed macroeconomic province-level data and their history of disaster exposure over the past two decades, and after accounting for two-way causality using a three-stage least-squares estimation procedure, we describe the relationship between disaster mortality and morbidity, disasters’ economic damages, government investment and regional economic activity and infrastructure development. The Chinese government’s aggressive investment in post-disaster reconstruction is discussed, and the implications of this investment for post-disaster private sector economic activity are analyzed empirically. We further investigate the differential effects of natural disasters on economic activity in the different provinces.
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Bibliographic InfoPaper provided by Victoria University of Wellington, School of Economics and Finance in its series Working Paper Series with number 2812.
Date of creation: 2013
Date of revision:
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Postal: Alice Fong, Administrator, School of Economics and Finance, Victoria Business School, Victoria University of Wellington, PO Box 600 Wellington, New Zealand
Phone: +64 (4) 463-5353
Fax: +64 (4) 463-5014
Web page: http://www.victoria.ac.nz/sef
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China; Natural disasters; Environment; Investment; Recovery;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-05 (All new papers)
- NEP-DEV-2013-07-05 (Development)
- NEP-TRA-2013-07-05 (Transition Economics)
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