IDEAS home Printed from https://ideas.repec.org/a/bla/worlde/v42y2019i9p2668-2683.html
   My bibliography  Save this article

Natural disasters and countries' exports: New insights from a new (and an old) database

Author

Listed:
  • Hajare El Hadri
  • Daniel Mirza
  • Isabelle Rabaud

Abstract

This paper is the first to uncover in details the impact of different families of disasters on exports from 1979 to 2000 (storms, floods, earthquakes and changes in temperatures). Besides, our paper is the first to compare in a quasi‐systematic way the results across the two data sets at hand, the standard EM‐DAT data and GeoMet data, a newly available data set based on geophysical and meteorological data (European Economic Review, 2013, 58, 18; Journal of Development Economics, 2014, 111, 92). We run series of regressions while accounting progressively for the characteristics of products (all traded goods v/s agriculture ones), the characteristics of the country (size, level of development) and the intensity of the catastrophes. When pooling all countries, and all types of disasters, we do not find any statistical impact on exports. But when focusing on each of them separately and on agricultural goods, the occurrence of an earthquake appears to reduce exports of about 3%, regardless of its location. A windstorm shock, even when it happens to be very severe, has hardly any impact. A flood, on its side, is estimated to reduce export flows of a small country by nearly 3%. The effect of changes in temperatures is ambiguous. All in all, except for temperature‐related disasters, the results are consistent across both data sets, EM‐DAT and GeoMet, although they appear to be slightly more in line with our expectations in the case of GeoMet.

Suggested Citation

  • Hajare El Hadri & Daniel Mirza & Isabelle Rabaud, 2019. "Natural disasters and countries' exports: New insights from a new (and an old) database," The World Economy, Wiley Blackwell, vol. 42(9), pages 2668-2683, September.
    • Handle: RePEc:bla:worlde:v:42:y:2019:i:9:p:2668-2683
    DOI: 10.1111/twec.12833
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/twec.12833
    Download Restriction: no
    File URL: https://libkey.io/10.1111/twec.12833?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Felbermayr, Gabriel & Gröschl, Jasmin, 2014. "Naturally negative: The growth effects of natural disasters," Journal of Development Economics, Elsevier, vol. 111(C), pages 92-106.
    2. Martin Gassebner & Alexander Keck & Robert Teh, 2010. "Shaken, Not Stirred: The Impact of Disasters on International Trade," Review of International Economics, Wiley Blackwell, vol. 18(2), pages 351-368, May.
    3. Benjamin F. Jones & Benjamin A. Olken, 2010. "Climate Shocks and Exports," American Economic Review, American Economic Association, vol. 100(2), pages 454-459, May.
    4. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.
    5. Noy, Ilan, 2009. "The macroeconomic consequences of disasters," Journal of Development Economics, Elsevier, vol. 88(2), pages 221-231, March.
    6. Toya, Hideki & Skidmore, Mark, 2007. "Economic development and the impacts of natural disasters," Economics Letters, Elsevier, vol. 94(1), pages 20-25, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kaori Tembata & Kenji Takeuchi, 2019. "Floods and Exports: An Empirical Study on Natural Disaster Shocks in Southeast Asia," Economics of Disasters and Climate Change, Springer, vol. 3(1), pages 39-60, April.
    2. Galina Hale, 2024. "Climate Disasters and Exchange Rates: Are Beliefs Keeping up with Climate Change?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 72(1), pages 253-291, March.
    3. Beirne, John & Dafermos, Yannis & Kriwoluzky, Alexander & Renzhi, Nuobu & Volz, Ulrich & Wittich, Jana, 2022. "Natural Disasters and Inflation in the Euro Area," VfS Annual Conference 2022 (Basel): Big Data in Economics 264132, Verein für Socialpolitik / German Economic Association.
    4. Gnangnon, Sèna Kimm, 2022. "Effect of structural economic vulnerability on the participation in international trade," EconStor Preprints 262004, ZBW - Leibniz Information Centre for Economics.
    5. Wim Naudé & Martin Cameron, 2021. "Export-Led Growth after COVID-19: The Case of Portugal," Notas Económicas, Faculty of Economics, University of Coimbra, issue 52, pages 7-53, July.
    6. Damette, Olivier & Mathonnat, Clément & Thavard, Julien, 2024. "Climate and sovereign risk: The Latin American experience with strong ENSO events," World Development, Elsevier, vol. 178(C).
    7. Elisa Navarra, 2022. "Stock Market Response to Firms’ Misconduct," Working Papers ECARES 2022-40, ULB -- Universite Libre de Bruxelles.
    8. Bahar Aydın Can & Serpil Gerdan & Ramazan Aslan, 2024. "The Effects of 6 February 2023 Earthquakes on the Production and Marketing Process of Firms in the Agriculture and Food Sector: The Case of Malatya Province, Türkiye," Sustainability, MDPI, vol. 16(21), pages 1-18, October.
    9. Lochan Kumar Batala & Wangxing Yu & Anwar Khan & Kalpana Regmi & Xiaoli Wang, 2021. "Natural disasters' influence on industrial growth, foreign direct investment, and export performance in the South Asian region of Belt and road initiative," 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. 108(2), pages 1853-1876, September.
    10. Léopold T Biardeau & Mondher Sahli, 2024. "Investigating the non-linear impacts of seven types of natural disasters on inbound tourism: Insights from the EM-DAT database," Tourism Economics, , vol. 30(4), pages 900-923, June.
    11. John Beirne & Yannis Dafermos & Alexander Kriwoluzky & Nuobu Renzhi & Ulrich Volz & Jana Wittich, 2021. "The Effects of Natural Disasters on Price Stability in the Euro Area," Working Papers 244, Department of Economics, SOAS University of London, UK.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Isabelle RABAUD & Daniel MIRZA & Hajare EL HADRI, 2018. "Why Natural Disasters Might Not Lead to a Fall in Exports in Developing Countries?," LEO Working Papers / DR LEO 2570, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    2. Hajare EL HADRI & Daniel MIRZA & Isabelle RABAUD, 2017. "Natural Disasters and Countries' Exports: New Insights from a New (and an Old Database)," LEO Working Papers / DR LEO 2503, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    3. Léopold T Biardeau & Mondher Sahli, 2024. "Investigating the non-linear impacts of seven types of natural disasters on inbound tourism: Insights from the EM-DAT database," Tourism Economics, , vol. 30(4), pages 900-923, June.
    4. Ruohan Wu, 2023. "Natural disasters, climate change, and structural transformation: A new perspective from international trade," The World Economy, Wiley Blackwell, vol. 46(5), pages 1333-1377, May.
    5. Cécile Couharde & Rémi Generoso, 2015. "Hydro-climatic thresholds and economic growth reversals in developing countries: an empirical investigation," EconomiX Working Papers 2015-26, University of Paris Nanterre, EconomiX.
    6. Subhani Keerthiratne & Richard S. J. Tol, 2017. "Impact of Natural Disasters on Financial Development," Economics of Disasters and Climate Change, Springer, vol. 1(1), pages 33-54, June.
    7. Emmanuel Apergis & Nicholas Apergis, 2021. "The impact of COVID-19 on economic growth: evidence from a Bayesian Panel Vector Autoregressive (BPVAR) model," Applied Economics, Taylor & Francis Journals, vol. 53(58), pages 6739-6751, December.
    8. Sven Kunze, 2021. "Unraveling the Effects of Tropical Cyclones on Economic Sectors Worldwide: Direct and Indirect Impacts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(4), pages 545-569, April.
    9. Dongyeol Lee & Huan Zhang & Chau Nguyen, 2018. "The Economic Impact of Natural Disasters in Pacific Island Countries: Adaptation and Preparedness," IMF Working Papers 2018/108, International Monetary Fund.
    10. Kunze, Sven, 2020. "Unraveling the effects of tropical cyclones on economic sectors worldwide," Working Papers 0685, University of Heidelberg, Department of Economics.
    11. Quy Ta & Yothin Jinjarak & Ilan Noy, 2022. "“How Do Shocks Affect International Reserves? A Quasi-Experiment of Earthquakes”," Open Economies Review, Springer, vol. 33(5), pages 945-971, November.
    12. Risti Permani & Xing Xu, 2022. "The nexus between natural disasters, supply chains and trade—Revisiting the role of preferential trade agreements in disaster risk reduction," The World Economy, Wiley Blackwell, vol. 45(10), pages 3002-3030, October.
    13. Daniel Osberghaus, 2019. "The Effects of Natural Disasters and Weather Variations on International Trade and Financial Flows: a Review of the Empirical Literature," Economics of Disasters and Climate Change, Springer, vol. 3(3), pages 305-325, October.
    14. Kunze, Sven, 2017. "Unraveling the Effects of Tropical Cyclones on Economic Sectors Worldwide," Working Papers 0641, University of Heidelberg, Department of Economics.
    15. Kunze, Sven, 2018. "Unraveling the effects of tropical cyclones on economic sectors worldwide," Working Papers 0653, University of Heidelberg, Department of Economics.
    16. Osberghaus, Daniel, 2019. "The effects of natural disasters and weather variations on international trade: A review of the empirical literature," ZEW Discussion Papers 19-002, ZEW - Leibniz Centre for European Economic Research.
    17. Jasmin Gröschl & Alexander Sandkamp, 2023. "Flood Events and Plant Level Trade: A Chinese Experience," ifo Working Paper Series 389, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    18. Berlemann, Michael & Wenzel, Daniela, 2018. "Hurricanes, economic growth and transmission channels," World Development, Elsevier, vol. 105(C), pages 231-247.
    19. Beirne, John & Dafermos, Yannis & Kriwoluzky, Alexander & Renzhi, Nuobu & Volz, Ulrich & Wittich, Jana, 2022. "Natural Disasters and Inflation in the Euro Area," VfS Annual Conference 2022 (Basel): Big Data in Economics 264132, Verein für Socialpolitik / German Economic Association.
    20. Hiroki Onuma & Kong Joo Shin & Shunsuke Managi, 2021. "Short-, Medium-, and Long-Term Growth Impacts of Catastrophic and Non-catastrophic Natural Disasters," Economics of Disasters and Climate Change, Springer, vol. 5(1), pages 53-70, April.

    More about this item

    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:bla:worlde:v:42:y:2019:i:9:p:2668-2683. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.