The impact of the Indian Ocean tsunami on Aceh’s long-term economic growth

Martin Philipp Heger and Eric Neumayer

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Existing studies typically find that natural disasters have negative economic consequences, resulting in, at best, a recovery to trend after initial losses or, at worst, longer term sustained losses. We exploit the unexpected nature of the 2004 Indian Ocean tsunami for carrying out a quasi-experimental difference-in-differences analysis of flooded districts and sub-districts in Aceh. The Indonesian province saw the single largest aid and reconstruction effort of any developing world region ever afflicted by a natural disaster. We show that this effort triggered higher long-term economic output than would have happened in the absence of the tsunami.

JEL-codes: O40 O47 Q54 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2019-11-01
New Economics Papers: this item is included in nep-gro and nep-sea
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Citations: View citations in EconPapers (15)

Published in Journal of Development Economics, 1, November, 2019, 141. ISSN: 0304-3878

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Related works:
Journal Article: The impact of the Indian Ocean tsunami on Aceh’s long-term economic growth (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:101115

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