IDEAS home Printed from https://ideas.repec.org/a/smx/journl/064080.html
   My bibliography  Save this article

Allocation of drought relief resources and its biased impact on agricultural production in Mexico

Author

Listed:
  • Jesus Eduardo Robles Chavez

    (Universidad Panamericana)

Abstract

Droughts, understood as natural and anthropogenic hazards, are studied as disasters, given the disruption they provoke to "normality" and livelihood. From damages to crops and livestock to unemployment and migration, droughts are framed as shocking events that carry negative effects on human life. Still, the consequences of their response policies are often underdiscussed. This article presents how post-drought investment increases agricultural productivity, by using precipitation and economic production as main factors for its allocation. Using data from 2003 to 2018 at the municipal level, panel regressions and matching methods are performed. Results indicate that those municipalities with disaster declarations and relief investment present a higher level of yield in the future compared to municipalities with similar meteorological conditions but without disaster declaration. The article shows how disaster definitions matter as policy processes, given the consequences that programs and policies have in the future of communities and in their relationship with hazards.

Suggested Citation

  • Jesus Eduardo Robles Chavez, 2022. "Allocation of drought relief resources and its biased impact on agricultural production in Mexico," Sobre México. Revista de Economía, Sobre México. Temas en economía, vol. 3(6), pages 40-80.
  • Handle: RePEc:smx:journl:06:40:80
    as

    Download full text from publisher

    File URL: https://sobremexico-revista.ibero.mx/index.php/Revista_Sobre_Mexico/article/view/111
    File Function: First version, 2022
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Steven Passel & Emanuele Massetti & Robert Mendelsohn, 2017. "A Ricardian Analysis of the Impact of Climate Change on European Agriculture," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 725-760, August.
    2. Anh Tuan Bui & Mardi Dungey & Cuong Viet Nguyen & Thu Phuong Pham, 2014. "The impact of natural disasters on household income, expenditure, poverty and inequality: evidence from Vietnam," Applied Economics, Taylor & Francis Journals, vol. 46(15), pages 1751-1766, May.
    3. Cole, Shawn & Healy, Andrew & Werker, Eric, 2012. "Do voters demand responsive governments? Evidence from Indian disaster relief," Journal of Development Economics, Elsevier, vol. 97(2), pages 167-181.
    4. Javier Baez & German Caruso & Valerie Mueller & Chiyu Niu, 2017. "Droughts augment youth migration in Northern Latin America and the Caribbean," Climatic Change, Springer, vol. 140(3), pages 423-435, February.
    5. Shuai Chen & Xiaoguang Chen & Jintao Xu, 2016. "Assessing the impacts of temperature variations on rice yield in China," Climatic Change, Springer, vol. 138(1), pages 191-205, September.
    6. Keerthiratne, Subhani & Tol, Richard S.J., 2018. "Impact of natural disasters on income inequality in Sri Lanka," World Development, Elsevier, vol. 105(C), pages 217-230.
    7. Carter, Michael R. & Little, Peter D. & Mogues, Tewodaj & Negatu, Workneh, 2007. "Poverty Traps and Natural Disasters in Ethiopia and Honduras," World Development, Elsevier, vol. 35(5), pages 835-856, May.
    8. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    9. Benoît Desmarchelier & Faïz Gallouj, 2013. "Endogenous growth and environmental policy: are the processes of growth and tertiarization in developed economies reversible?," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 831-860, September.
    10. Akao, Ken-Ichi & Sakamoto, Hiroaki, 2018. "A theory of disasters and long-run growth," Journal of Economic Dynamics and Control, Elsevier, vol. 95(C), pages 89-109.
    11. Eduardo Cavallo & Sebastian Galiani & Ilan Noy & Juan Pantano, 2013. "Catastrophic Natural Disasters and Economic Growth," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1549-1561, December.
    12. Albala-Bertrand, J. M., 1993. "Natural disaster situations and growth: A macroeconomic model for sudden disaster impacts," World Development, Elsevier, vol. 21(9), pages 1417-1434, September.
    13. Michael Berlemann & Max Friedrich Steinhardt, 2017. "Climate Change, Natural Disasters, and Migration—a Survey of the Empirical Evidence," CESifo Economic Studies, CESifo Group, vol. 63(4), pages 353-385.
    14. Loayza, Norman V. & Olaberría, Eduardo & Rigolini, Jamele & Christiaensen, Luc, 2012. "Natural Disasters and Growth: Going Beyond the Averages," World Development, Elsevier, vol. 40(7), pages 1317-1336.
    15. Mohan, Preeya S. & Ouattara, Bazoumana & Strobl, Eric, 2018. "Decomposing the Macroeconomic Effects of Natural Disasters: A National Income Accounting Perspective," Ecological Economics, Elsevier, vol. 146(C), pages 1-9.
    16. Schumacher, Ingmar & Strobl, Eric, 2011. "Economic development and losses due to natural disasters: The role of hazard exposure," Ecological Economics, Elsevier, vol. 72(C), pages 97-105.
    17. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    18. Felbermayr, Gabriel & Gröschl, Jasmin, 2014. "Naturally negative: The growth effects of natural disasters," Journal of Development Economics, Elsevier, vol. 111(C), pages 92-106.
    19. Jiquan Zhang & Norio Okada & Hirokazu Tatano & Seiji Hayakawa, 2004. "Damage Evaluation of Agro-meteorological Hazards in the Maize-Growing Region of Songliao Plain, China: Case Study of Lishu County of Jilin Province," 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. 31(1), pages 209-232, January.
    20. Rephann, Terance & Isserman, Andrew, 1994. "New highways as economic development tools: An evaluation using quasi-experimental matching methods," Regional Science and Urban Economics, Elsevier, vol. 24(6), pages 723-751, December.
    21. Jesús Crespo Cuaresma & Jaroslava Hlouskova & Michael Obersteiner, 2008. "Natural Disasters As Creative Destruction? Evidence From Developing Countries," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 214-226, April.
    22. 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.
    23. Massetti, Emanuele & Mendelsohn, Robert & Chonabayashi, Shun, 2016. "How well do degree days over the growing season capture the effect of climate on farmland values?," Energy Economics, Elsevier, vol. 60(C), pages 144-150.
    Full references (including those not matched with items on IDEAS)

    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. Yashobanta Parida & Swati Saini & Joyita Roy Chowdhury, 2021. "Economic growth in the aftermath of floods in Indian states," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(1), pages 535-561, January.
    2. De Bandt Olivier, & Jacolin Luc, & Lemaire Thibault., 2021. "Climate Change in Developing Countries: Global Warming Effects,Transmission Channels and Adaptation Policies," Working papers 822, Banque de France.
    3. Lazzaroni, Sara & van Bergeijk, Peter A.G., 2014. "Natural disasters' impact, factors of resilience and development: A meta-analysis of the macroeconomic literature," Ecological Economics, Elsevier, vol. 107(C), pages 333-346.
    4. Gignoux, Jérémie & Menéndez, Marta, 2016. "Benefit in the wake of disaster: Long-run effects of earthquakes on welfare in rural Indonesia," Journal of Development Economics, Elsevier, vol. 118(C), pages 26-44.
    5. Huang, Lulu & Liu, Qiannan & Tang, Yugang, 2024. "Long-term economic impact of disasters: Evidence from multiple earthquakes in China," World Development, Elsevier, vol. 174(C).
    6. Thomas Neise & Franziska Sohns & Moritz Breul & Javier Revilla Diez, 2022. "The effect of natural disasters on FDI attraction: a sector-based analysis over time and space," 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. 110(2), pages 999-1023, January.
    7. Naqvi, Asjad, 2017. "Deep Impact: Geo-Simulations as a Policy Toolkit for Natural Disasters," World Development, Elsevier, vol. 99(C), pages 395-418.
    8. Dieppe,Alistair Matthew & Kilic Celik,Sinem & Okou,Cedric Iltis Finafa, 2020. "Implications of Major Adverse Events on Productivity," Policy Research Working Paper Series 9411, The World Bank.
    9. 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.
    10. Miles Parker, 2018. "The Impact of Disasters on Inflation," Economics of Disasters and Climate Change, Springer, vol. 2(1), pages 21-48, April.
    11. Heger, Martin Philipp & Neumayer, Eric, 2019. "The impact of the Indian Ocean tsunami on Aceh’s long-term economic growth," Journal of Development Economics, Elsevier, vol. 141(C).
    12. 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.
    13. Felbermayr, Gabriel & Gröschl, Jasmin, 2014. "Naturally negative: The growth effects of natural disasters," Journal of Development Economics, Elsevier, vol. 111(C), pages 92-106.
    14. Katharina Lehmann-Uschner & Kati Krähnert, 2018. "When Shocks Become Persistent: Household-Level Asset Growth in the Aftermath of an Extreme Weather Event," Discussion Papers of DIW Berlin 1759, DIW Berlin, German Institute for Economic Research.
    15. Julio G. Fournier Gabela & Luis Sarmiento, 2020. "Kurzarbeit and Natural Disasters: How Effective Are Short-Time Working Allowances in Avoiding Unemployment?," Discussion Papers of DIW Berlin 1909, DIW Berlin, German Institute for Economic Research.
    16. Rahman, Muhammad Habibur & Anbarci, Nejat & Ulubaşoğlu, Mehmet A., 2022. "“Storm autocracies”: Islands as natural experiments," Journal of Development Economics, Elsevier, vol. 159(C).
    17. F. Zhou & W.J.W. Botzen, 2017. "The Impact of Natural Disasters on Firm Growth in Vietnam:: Interaction with Financial Constraints," Working Papers 17-20, Utrecht School of Economics.
    18. Lee, Chien-Chiang & Wang, Chih-Wei & Ho, Shan-Ju & Wu, Ting-Pin, 2021. "The impact of natural disaster on energy consumption: International evidence," Energy Economics, Elsevier, vol. 97(C).
    19. 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.
    20. Eric Nazindigouba Kere & Somlanaré Romuald Kinda & Rasmané Ouedraogo, 2015. "Do Natural Disasters Hurt Tax Resource Mobilization?," CERDI Working papers halshs-01242968, HAL.

    More about this item

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

    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:smx:journl:06:40:80. 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: Maria Alejandra Villegas Gutierrez (email available below). General contact details of provider: https://sobremexico-revista.ibero.mx/ .

    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.