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Natural disasters and firms in Vietnam

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  • Vu, Tam Bang
  • Noy, Ilan

Abstract

This paper investigates the consequences of natural disasters on firms in Vietnam over the period 2000 to 2008. We examine the impacts of natural disasters on firm investment and retail sales. We find evidence of adverse effects of disasters on retail sales accompanied by an increase in firm investment of very similar magnitude. There are important differences across geographical units, with the positive impact on investment unique to large cities and provinces with large urban concentrations. We find that more remote rural areas, especially in the North, experience declines in sales without the mitigating boost to investment in disasters’ aftermath. We also show that the decline in sales is not apparently associated with declines in household incomes.

Suggested Citation

  • Vu, Tam Bang & Noy, Ilan, 2013. "Natural disasters and firms in Vietnam," Working Paper Series 3063, Victoria University of Wellington, School of Economics and Finance.
  • Handle: RePEc:vuw:vuwecf:3063
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    File URL: http://researcharchive.vuw.ac.nz/handle/10063/3063
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    References listed on IDEAS

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    Cited by:

    1. Tam Vu & Ilan Noy, 2015. "Regional effects of natural disasters in China: investing in post-disaster recovery," 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. 75(2), pages 111-126, February.

    More about this item

    Keywords

    Vietnam; Natural disasters; Investment; Recovery; Retail sales;

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