Economic Growth Response in the Wake of Natural Disasters Using Panel Data Analysis: A Regional Dimension
Author: Fakhra Aslam

This study finds the annual mean responses of GDP growth along with its disaggregated parts i.e. agricultural growth and non-agricultural growth to four type of natural disasters like drought, flood, earthquake and storm in four major regions of world. This study pools experiences of all countries in each region over time. It uses VARX methodology by taking natural disasters as exogenous shocks to economic growth of four regions. This methodology has been applied over cross countries and time. From the analysis of this study, we find different results. Firstly, we observe that natural disasters have strong effect in all regions. This effect is somewhere positive and on some negative. Secondly, we come to know that effect of disasters depends on area, development of area and type of disaster from which that area are mostly affected. Thirdly, all natural disasters are not a bad sign for economic growth; instead, some disasters can bring positive change to the economic growth. Fourthly, we study that impact of moderate disasters is more good and beneficial rather than severe ones. Fifthly, There are also some patterns of effects caused by the natural disasters systematically. Positive effects show delayed pattern and it appears after some delay but negative effect of disasters shows quickly as natural disaster prevails. Supervisor:- Dr. Zahid Asghar

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Supervisor: Zahid Asghar

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