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Aid, natural disasters and the samaritan's dilemma

Author

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  • Raschky, Paul A.
  • Schwindt, Manijeh

Abstract

This paper discusses the impact of foreign aid on the recipient country's preparedness against natural disasters. The theoretical model shows that foreign aid can have two opposing effects on a country's level of mitigating activities. In order to test the theoretical propositions, the authors analyze the effect of foreign aid dependence on ex-ante risk-management activity proxied by the death toll from major storms, floods and earthquakes occurring worldwide between 1980 and 2002. They find evidence that the crowding-out effect of foreign aid outweighs the preventive effect in the case of storms, while there is mixed evidence in the case of floods and earthquakes.

Suggested Citation

  • Raschky, Paul A. & Schwindt, Manijeh, 2009. "Aid, natural disasters and the samaritan's dilemma," Policy Research Working Paper Series 4952, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4952
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    Citations

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    Cited by:

    1. Jorge Gallego, 2015. "Natural Disasters and Clientelism: the Case of Floods and Landslides in Colombia," DOCUMENTOS DE TRABAJO 012537, UNIVERSIDAD DEL ROSARIO.
    2. Erwann Michel-Kerjan, 2013. "Finance des risques catastrophiques. Le marché américain est en plein bouleversement," Revue économique, Presses de Sciences-Po, vol. 64(4), pages 615-634.
    3. Goeschl, Timo & Managi, Shunsuke, 2017. "Public in-kind relief and private self-insurance," Working Papers 0633, University of Heidelberg, Department of Economics.
    4. Li, C. & van Bergeijk, P.A.G., 2016. "Do natural disasters stimulate international trade?," ISS Working Papers - General Series 622, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    5. Tatyana Deryugina & Barrett Kirwan, 2016. "Does The Samaritan's Dilemma Matter? Evidence From U.S. Agriculture," NBER Working Papers 22845, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Natural Disasters; Hazard Risk Management; Disaster Management; Population Policies; Post Conflict Reconstruction;

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