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Natural disasters, government effectiveness and agribusiness export competitiveness: Evidence from Developing Asia

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  • Madhushika Perera

    (Department of Accounting, Finance and Economics, Griffith Business School, Gold Coast Campus, Griffith University)

  • Shyama Ratnasiri

    (Department of Accounting, Finance and Economics, Griffith Business School, Gold Coast Campus, Griffith University)

Abstract

Natural disasters affect agribusiness sectors in many countries, impacting exports and their competitiveness in the international market. The higher government effectiveness is believed to alleviate these effects, however, empirical evidence to validate these claims is less documented. This study addresses this gap by focusing on eight developing Asian countries where agribusiness exports are particularly important. Using annual panel data of bilateral agribusiness export flows and a panel fixed effects model, our findings indicate that natural disasters have detrimental effects on agribusiness export competitiveness, while government effectiveness significantly reduces these adverse effects. The results vary across countries. For example, the estimated coefficient for the role of government in reducing the negative impacts of natural disasters on Sri Lanka’s agribusiness export competitiveness is the smallest (0.046), compared to the highest coefficient for Thailand’s competitiveness (0.157). These findings highlight the crucial role of government in strengthening the export competitiveness of the agribusiness sector in developing Asian countries.

Suggested Citation

  • Madhushika Perera & Shyama Ratnasiri, 2025. "Natural disasters, government effectiveness and agribusiness export competitiveness: Evidence from Developing Asia," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 121(8), pages 9311-9337, May.
    • Handle: RePEc:spr:nathaz:v:121:y:2025:i:8:d:10.1007_s11069-025-07159-6
    DOI: 10.1007/s11069-025-07159-6
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