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Impact of natural disaster on public sector corruption

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  • Yamamura, Eiji

Abstract

This paper uses inter-country panel data obtained during the period 1990 to 2010 to examine how the occurrence of natural disasters has affected corruption within the public sector. There are a number of major findings from this study. (1) Natural disasters lead to corruption within the public sector. (2) Furthermore, disaggregating disasters into various categories for closer examination reveals that floods, which are foreseeable and affect victims that are limited to a particular group, increase corruption; however, other types of disasters do not have such a consequence. (3) The effect of floods is much greater in developed countries than in developing countries. These findings are observed even after considering the time trend, the various characteristics of the countries affected, and statistical outliers. In developed countries, people have an incentive to live within areas prone to flooding because the benefit expected from the occurrence of a flood is greater than its perceived cost.

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  • Yamamura, Eiji, 2013. "Impact of natural disaster on public sector corruption," MPRA Paper 49760, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:49760
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    9. Michael Breen & Robert Gillanders & Caroline McMullan, 2024. "Corruption, homelessness and disasters," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(1), pages 70-83, January.
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    21. Eiji Yamamura, 2015. "The Impact of Natural Disasters on Income Inequality: Analysis using Panel Data during the Period 1970 to 2004," International Economic Journal, Taylor & Francis Journals, vol. 29(3), pages 359-374, September.
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    More about this item

    Keywords

    Corruption; Institution; Disasters; Risk;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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