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Regional Effects of Natural Disasters in China

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  • Vu, Tam Bang
  • Noy, Ilan

Abstract

We examine the effects of natural disasters on income and investment in China. Using detailed macroeconomic province-level data and their history of disaster exposure over the past two decades, and after accounting for two-way causality using a three-stage least-squares estimation procedure, we describe the relationship between disaster mortality and morbidity, disasters’ economic damages, government investment and regional economic activity and infrastructure development. The Chinese government’s aggressive investment in post-disaster reconstruction is discussed, and the implications of this investment for post-disaster private sector economic activity are analyzed empirically. We further investigate the differential effects of natural disasters on economic activity in the different provinces.

Suggested Citation

  • Vu, Tam Bang & Noy, Ilan, 2013. "Regional Effects of Natural Disasters in China," Working Paper Series 18776, Victoria University of Wellington, School of Economics and Finance.
    • Handle: RePEc:vuw:vuwecf:18776
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    References listed on IDEAS

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