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Increasing the Resilience of Asian Supply Chains to Natural Disasters: The Role of the Financial Sector

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  • THORBECKE William

    (Research Institute of Economy, Trade and Industry)

Abstract

The financial sector is a part of the vital infrastructure of the economy. It can play an important role in mitigating the economic dislocation caused by natural disasters. Resilient financial institutions can ease anxiety and maintain confidence following a disaster. Robust insurance markets provide funds for reconstruction and are an efficient way to prepare for catastrophes. Deep and efficient bond markets allow governments to finance expenditures for emergency relief at lower cost. This paper considers steps that member countries of the Association of Southeast Asian Nations can take to develop the financial sector in these ways and thus be better prepared for the earthquakes, typhoons, tidal waves, and other catastrophes that buffet the region.

Suggested Citation

  • THORBECKE William, 2016. "Increasing the Resilience of Asian Supply Chains to Natural Disasters: The Role of the Financial Sector," Working Papers DP-2016-08, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2016-08
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    References listed on IDEAS

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    5. Martin Melecky & Claudio Raddatz, 2015. "Fiscal Responses after Catastrophes and the Enabling Role of Financial Development," The World Bank Economic Review, World Bank, vol. 29(1), pages 129-149.
    6. Yap, Josef T. & Aldaba, Rafaelita M., 2009. "Investment and Capital Flows: Implications of the ASEAN Economic Community," Discussion Papers DP 2009-01, Philippine Institute for Development Studies.
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    Cited by:

    1. Israel, Danilo C. & Bunao, David Feliks M., 2016. "Research on Urban Resilience to Natural Disasters of Households, Firms, and Communities in the Philippines," Discussion Papers DP 2016-41, Philippine Institute for Development Studies.

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    More about this item

    Keywords

    production networks; financial services; natural disasters;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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