IDEAS home Printed from https://ideas.repec.org/p/vuw/vuwecf/4968.html
   My bibliography  Save this paper

The household response to persistent natural disasters: Evidence from Bangladesh

Author

Listed:
  • Karim, Azreen

Abstract

We examine the short-run economic impacts of recurrent flooding on Bangladeshi households surveyed in 2000, 2005 and 2010. In 2010 Household Income and Expenditure Survey (HIES), households answered a set of questions’ on whether they were affected by flood and its likely impacts. We identify two treatment (affected) groups by using the self-reported data and historical rainfall data based flood risk index. We estimate a difference-indifference (DID) model to quantify the impacts on income, expenditure, asset and labour market outcomes and further extend our analysis to different income and expenditure brackets. Overall, we find robust evidence of negative impacts on agricultural income and expenditure. Intriguingly, the extreme poor (i.e. the bottom 15th quintile) experience significant positive impacts on agricultural income in the self-reported treatment case.

Suggested Citation

  • Karim, Azreen, 2016. "The household response to persistent natural disasters: Evidence from Bangladesh," Working Paper Series 4968, Victoria University of Wellington, School of Economics and Finance.
  • Handle: RePEc:vuw:vuwecf:4968
    as

    Download full text from publisher

    File URL: http://researcharchive.vuw.ac.nz/handle/10063/4968
    Download Restriction: no

    References listed on IDEAS

    as
    1. Shahidur R. Khandker, 2007. "Coping with flood: role of institutions in Bangladesh," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 169-180, March.
    2. Ezequiel Cabezon & Leni Hunter & Patrizia Tumbarello & Kazuaki Washimi & Yiqun Wu, 2015. "Enhancing Macroeconomic Resilience to Natural Disasters and Climate Change in the Small States of the Pacific," IMF Working Papers 15/125, International Monetary Fund.
    3. Thomas Fomby & Yuki Ikeda & Norman V. Loayza, 2013. "The Growth Aftermath Of Natural Disasters," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(3), pages 412-434, April.
    4. Balasubramanian R, 2015. "Climate Sensitivity of Groundwater Systems Critical for Agricultural Incomes in South India," Working Papers id:7542, eSocialSciences.
    5. Nipon POAPONSAKORN & Pitsom MEETHOM, 2013. "Impact of 2011 Floods, and Flood Management in Thailand," Working Papers DP-2013-34, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Joseph W. H. Lough, 2014. "A Model For Economic Growth In Bosnia And Herzegovina," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 12(1), pages 15-30.
    7. Noy, Ilan, 2009. "The macroeconomic consequences of disasters," Journal of Development Economics, Elsevier, vol. 88(2), pages 221-231, March.
    8. Dercon, Stefan, 2004. "Growth and shocks: evidence from rural Ethiopia," Journal of Development Economics, Elsevier, vol. 74(2), pages 309-329, August.
    9. Akter, Sonia & Mallick, Bishawjit, 2013. "The poverty–vulnerability–resilience nexus: Evidence from Bangladesh," Ecological Economics, Elsevier, vol. 96(C), pages 114-124.
    10. Mallick, Debdulal & Rafi, Mohammad, 2010. "Are Female-Headed Households More Food Insecure? Evidence from Bangladesh," World Development, Elsevier, vol. 38(4), pages 593-605, April.
    11. Auffret, Philippe, 2003. "High consumption volatility : the impact of natural disasters?," Policy Research Working Paper Series 2962, The World Bank.
    12. Emmanuel Skoufias & Roy S. Katayama & B. Essama-Nssah, 2012. "Too little too late: welfare impacts of rainfall shocks in rural Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 48(3), pages 351-368, December.
    13. Kotikula, Aphichoke & Narayan, Ambar & Zaman, Hassan, 2010. "To what extent are Bangladesh's recent gains in poverty reduction different from the past?," Policy Research Working Paper Series 5199, The World Bank.
    14. Shahidur R. Khandker & Zaid Bakht & Gayatri B. Koolwal, 2009. "The Poverty Impact of Rural Roads: Evidence from Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 57(4), pages 685-722, July.
    15. Lanjouw, Peter & Ravallion, Martin, 1995. "Poverty and Household Size," Economic Journal, Royal Economic Society, vol. 105(433), pages 1415-1434, November.
    16. Chun, Hyunbae & Ha, Joonkyung & Kim, Jung-Wook, 2014. "Firm heterogeneity, R&D, and economic growth," Economic Modelling, Elsevier, vol. 36(C), pages 149-156.
    17. Masahiro Shoji, 2010. "Does Contingent Repayment in Microfinance Help the Poor During Natural Disasters?," Journal of Development Studies, Taylor & Francis Journals, vol. 46(2), pages 191-210.
    18. Lohmann, Steffen & Lechtenfeld, Tobias, 2015. "The Effect of Drought on Health Outcomes and Health Expenditures in Rural Vietnam," World Development, Elsevier, vol. 72(C), pages 432-448.
    19. Narayanan K & Unmesh Patnaik, 2010. "Vulnerability and Coping to Disasters: A Study of Household Behaviour in Flood Prone Region of India," Working Papers id:2470, eSocialSciences.
    20. Banerjee, Lopamudra, 2007. "Effect of Flood on Agricultural Wages in Bangladesh: An Empirical Analysis," World Development, Elsevier, vol. 35(11), pages 1989-2009, November.
    21. Foltz, Jeremy D. & Gars, Jared & Özdoğan, Mutlu & Simane, Belay & Zaitchik, Ben, 2013. "Weather and Welfare in Ethiopia," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150298, Agricultural and Applied Economics Association.
    22. Karim, Azreen & Noy, Ilan, 2015. "The (mis) allocation of public spending in a low income country: Evidence from disaster risk reduction spending in Bangladesh," Working Paper Series 4194, Victoria University of Wellington, School of Economics and Finance.
    23. repec:eco:journ1:2014-02-19 is not listed on IDEAS
    24. Meinzen-Dick, Ruth Suseela & Kameri-Mbote, Patricia & Markelova, Helen, 2007. "Property rights for poverty reduction:," 2020 vision briefs BB21 Special Edition, International Food Policy Research Institute (IFPRI).
    25. Kurosaki, Takashi, 2015. "Vulnerability of household consumption to floods and droughts in developing countries: evidence from Pakistan," Environment and Development Economics, Cambridge University Press, vol. 20(02), pages 209-235, April.
    26. Raymond Guiteras & Amir Jina & A. Mushfiq Mobarak, 2015. "Satellites, Self-Reports, and Submersion: Exposure to Floods in Bangladesh," American Economic Review, American Economic Association, vol. 105(5), pages 232-236, May.
    27. Thomas, Timothy & Christiaensen, Luc & Do, Quy Toan & Trung, Le Dang, 2010. "Natural disasters and household welfare : evidence from Vietnam," Policy Research Working Paper Series 5491, The World Bank.
    28. Arouri, Mohamed & Nguyen, Cuong & Youssef, Adel Ben, 2015. "Natural Disasters, Household Welfare, and Resilience: Evidence from Rural Vietnam," World Development, Elsevier, vol. 70(C), pages 59-77.
    29. Buvinic, Mayra & Gupta, Geeta Rao, 1997. "Female-Headed Households and Female-Maintained Families: Are They Worth Targeting to Reduce Poverty in Developing Countries?," Economic Development and Cultural Change, University of Chicago Press, vol. 45(2), pages 259-280, January.
    30. Valerie Mueller & Daniel Osgood, 2009. "Long-term Impacts of Droughts on Labour Markets in Developing Countries: Evidence from Brazil," Journal of Development Studies, Taylor & Francis Journals, vol. 45(10), pages 1651-1662.
    31. Eduardo Rodriguez-Oreggia & Alejandro De La Fuente & Rodolfo De La Torre & Hector A. Moreno, 2013. "Natural Disasters, Human Development and Poverty at the Municipal Level in Mexico," Journal of Development Studies, Taylor & Francis Journals, vol. 49(3), pages 442-455, March.
    32. Tewodaj Mogues, 2011. "Shocks and Asset Dynamics in Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 60(1), pages 91-120.
    33. Gillian Hawkes & Gene Rowe, 2008. "A characterisation of the methodology of qualitative research on the nature of perceived risk: trends and omissions," Journal of Risk Research, Taylor & Francis Journals, vol. 11(5), pages 617-643, July.
    34. Jonathan Haughton & Shahidur R. Khandker, 2009. "Handbook on Poverty and Inequality," World Bank Publications, The World Bank, number 11985, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Development; Natural Disasters; Persistent; Difference-in-Difference;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vuw:vuwecf:4968. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Library Technology Services). General contact details of provider: http://edirc.repec.org/data/egvuwnz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.