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Macroeconomic impact of natural disasters on a small island economy: evidence from a CGE model

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  • P. K. Narayan

Abstract

Natural disasters are common in the Pacific Island countries. Fiji has been affected by many of these disasters. The most recent cyclone exerted substantial damage to infrastructure, agricultural and industrial activity in Fiji. The aim of this article is to incorporate these damages into Fiji's computable general equilibrium model and examine the short-run macroeconomic impact. Among the key results, it is found that cyclones negatively impact private income, consumption, savings, real GDP and real national welfare.

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  • P. K. Narayan, 2003. "Macroeconomic impact of natural disasters on a small island economy: evidence from a CGE model," Applied Economics Letters, Taylor & Francis Journals, vol. 10(11), pages 721-723.
  • Handle: RePEc:taf:apeclt:v:10:y:2003:i:11:p:721-723
    DOI: 10.1080/1350485032000133372
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    Cited by:

    1. Noy, Ilan, 2009. "The macroeconomic consequences of disasters," Journal of Development Economics, Elsevier, vol. 88(2), pages 221-231, March.
    2. Safarzyńska, Karolina & Brouwer, Roy & Hofkes, Marjan, 2013. "Evolutionary modelling of the macro-economic impacts of catastrophic flood events," Ecological Economics, Elsevier, vol. 88(C), pages 108-118.
    3. Noy, Ilan & Karim, Azreen, 2013. "Poverty, inequality and natural disasters – A survey," Working Paper Series 2974, Victoria University of Wellington, School of Economics and Finance.
    4. Noy, Ilan & Vu, Tam Bang, 2010. "The economics of natural disasters in a developing country: The case of Vietnam," Journal of Asian Economics, Elsevier, vol. 21(4), pages 345-354, August.
    5. Noriko Ishikawa & Mototsugu Fukushige, 2007. "Impacts of tourism and fiscal expenditure to remote islands: the case of the Amami islands in Japan," Applied Economics Letters, Taylor & Francis Journals, vol. 14(9), pages 661-666.
    6. Makena Coffman & Ilan Noy, 2009. "In the Eye of the Storm: Coping with Future Natural Disasters in Hawaii," Working Papers 200904, University of Hawaii at Manoa, Department of Economics.
    7. Guizhi Wang & Xia Li & Xianhua Wu & Jun Yu, 2015. "The rainstorm comprehensive economic loss assessment based on CGE model: using a July heavy rainstorm in Beijing as an example," 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. 76(2), pages 839-854, March.
    8. repec:eee:ecolec:v:146:y:2018:i:c:p:1-9 is not listed on IDEAS
    9. Michael C. Huang & Nobuhiro Hosoe, 2014. "A General Equilibrium Assessment on a Compound Disaster in Northern Taiwan," GRIPS Discussion Papers 14-06, National Graduate Institute for Policy Studies.

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