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The impact of cyclones on local economic growth: Evidence from local projections

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  • Naguib, Costanza
  • Pelli, Martino
  • Poirier, David
  • Tschopp, Jeanne

Abstract

We shed new light on the short-term dynamic effects of cyclones on local economic growth in India. We proxy local GDP growth with night-time light intensity data and construct a cyclone index that varies across months and districts depending on wind speed exposures. Using local projections on highly granular data for the period 1993M1-2011M12, we find that yearly estimations hide large short-term differential impacts and that the negative impact of cyclones is the largest between 4 and 8 months after the event.

Suggested Citation

  • Naguib, Costanza & Pelli, Martino & Poirier, David & Tschopp, Jeanne, 2022. "The impact of cyclones on local economic growth: Evidence from local projections," Economics Letters, Elsevier, vol. 220(C).
    • Handle: RePEc:eee:ecolet:v:220:y:2022:i:c:s0165176522003457
    DOI: 10.1016/j.econlet.2022.110871
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    Cited by:

    1. Pelli, Martino & Tschopp, Jeanne & Bezmaternykh, Natalia & Eklou, Kodjovi M., 2023. "In the eye of the storm: Firms and capital destruction in India," Journal of Urban Economics, Elsevier, vol. 134(C).
    2. Barattieri, Alessandro & Borda, Patrice & Brugnoli, Alberto & Pelli, Martino & Tschopp, Jeanne, 2023. "The short-run, dynamic employment effects of natural disasters: New insights from Puerto Rico," Ecological Economics, Elsevier, vol. 205(C).
    3. Nabil Daher, 2024. "Is growth at risk from natural disasters? Evidence from quantile local projections," French Stata Users' Group Meetings 2024 12, Stata Users Group.
    4. Meier, Sarah & Elliott, Robert J.R. & Strobl, Eric, 2023. "The regional economic impact of wildfires: Evidence from Southern Europe," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    5. Dino Collalti, 2024. "The Economic Dynamics After a Flood: Evidence from Satellite Data," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(9), pages 2401-2428, September.
    6. Nabil Daher, 2024. "Is growth at risk from natural disasters? Evidence from quantile local projections," Working Papers 2024.8, International Network for Economic Research - INFER.
    7. Tien Manh Vu & Hiroyuki Yamada, 2024. "Impacts of capital intensity on family formation and gender equality in Vietnam," Keio-IES Discussion Paper Series 2024-001, Institute for Economics Studies, Keio University.

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    More about this item

    Keywords

    Cyclone; Night light; India; Monthly measurements; Local projections;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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