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The effect of natural disaster on economic growth: Evidence from a major earthquake in Haiti

Authors :
Joseph, Iverson-Love
Centre de recherche en économie et management (CREM)
Université de Caen Normandie (UNICAEN)
Normandie Université (NU)-Normandie Université (NU)-Université de Rennes (UR)-Centre National de la Recherche Scientifique (CNRS)
Source :
World Development, World Development, 2022, 159, pp.106053. ⟨10.1016/j.worlddev.2022.106053⟩
Publication Year :
2022
Publisher :
Elsevier BV, 2022.

Abstract

International audience; We examine the average causal impact of the 2010 earthquake in Haiti on economic growth and recovery by conducting a disaggregated empirical analysis at the subnational level. To achieve this, we opt for a fixed effects difference-in-differences model and impulse response functions by using the earthquake's intensity as the main exogenous variable and nighttime light data as a proxy for economic activity from 1992 to 2019. Results indicate a robust evidence that the earthquake caused a significant decrease in the country's economic growth in the short-term. We also reveal that such declines in growth persited ten years after the disaster. Overall, estimates provide new insights on the short and long-run economic growth effects of major natural disasters. Therefore, our analysis of the effects of earthquake intensity on the growth of night lights is an important contribution to disaster economics. In the concluding reflections, the findings, implications, and avenues for future research are discussed. (C) 2022 Elsevier Ltd. All rights reserved.

Details

ISSN :
0305750X
Volume :
159
Database :
OpenAIRE
Journal :
World Development
Accession number :
edsair.doi.dedup.....1395b5aa380ca826e1f28e937a8c6d5d
Full Text :
https://doi.org/10.1016/j.worlddev.2022.106053