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The Macroeconomic Impacts of Natural Disasters: The Case of Floods

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  • Juncal Cunado
  • Susana Ferreira

Abstract

We use panel vector autoregression models to trace the dynamic response of output growth to flood shocks, using new data on large flood events in 135 countries between 1985 and 2008. Flood shocks tend to have a positive and significant average impact on per capita GDP growth. However, this effect is limited to developing countries and to moderate floods. The positive impact of floods is larger and more significant in the agricultural sector; while floods seem to have a direct effect on agricultural growth rates in developing countries, their effect on nonagricultural growth rates is mainly indirect.

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  • Juncal Cunado & Susana Ferreira, 2014. "The Macroeconomic Impacts of Natural Disasters: The Case of Floods," Land Economics, University of Wisconsin Press, vol. 90(1), pages 149-168.
    • Handle: RePEc:uwp:landec:v:90:y:2014:i:1:p:149-168
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    Cited by:

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    19. Esa Azali Asyahid & Immanuel Satya Pekerti, 2022. "Economic impact of natural disasters, spillovers, and role of human development: case of Indonesia," Letters in Spatial and Resource Sciences, Springer, vol. 15(3), pages 493-506, December.
    20. Utkur Djanibekov & Maksym Polyakov & Heather Craig & Ryan Paulik, 2024. "Flood Impacts on Agriculture under Climate Change: The case of the Awanui Catchment, New Zealand," Economics of Disasters and Climate Change, Springer, vol. 8(2), pages 283-316, July.
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    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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