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Regional Development for a Disastrous Country

  • Brata, Aloysius Gunadi

The purpose of this paper is to explore the relationship between social and economic factors on the economic loss and number of victims of natural disaster occurring in Indonesia using a pooled data from 2004 to 2008 of all provinces. This study found income as measured by GDRP per capita have negative impact on the number of deaths as well as in the number of houses destroyed. It also suggests that the impact of natural disasters can be lowered by enhancing not only economic development but also human development. Therefore, regional development should consider both of developments in order to reduce the impact of natural disasters. Other important finding of this study is the positive impact of government expenditure on the disaster impact related to the number of deaths. It means that large local government expenditure will not guarantee the regions in reducing the impact of natural disasters. The positive impact of government size on the disaster impact is an interesting topic for a further study that may be related to other issue such corruption in the distribution of aid regarding disasters. The study also suggests that further research may use other appropriate indicator of human development in estimating the benefit of human quality in reducing the impact of natural disaster.

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File URL: http://mpra.ub.uni-muenchen.de/23606/1/MPRA_paper_23606.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 23606.

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Date of creation: Jun 2010
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Handle: RePEc:pra:mprapa:23606
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  1. Mark Skidmore & Hideki Toya, 2005. "Economic Development and the Impacts of Natural Disasters," Working Papers 05-04, UW-Whitewater, Department of Economics.
  2. yamamura, eiji, 2009. "Effects of interactions among social capital, income, and learning from experiences of natural disasters: A case study from Japan," MPRA Paper 16223, University Library of Munich, Germany.
  3. Yoshito Takasaki, 2011. "Do Local Elites Capture Natural Disaster Reconstruction Funds?," Journal of Development Studies, Taylor & Francis Journals, vol. 47(9), pages 1281-1298, May.
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