The effect of natural disasters on economic growth with the moderating role of environmental degradation

Mohammad Nourmohammadi Shalkeh and Zahra Fotourehchi

International Journal of Sustainable Economy, 2023, vol. 15, issue 3, 292-305

Abstract: In recent decades, a significant increase in natural disasters has led to a decline in economic growth in countries at risk of natural disasters. Considering the importance of environmental degradation in creating climate change and the subsequent occurrence of natural disasters, as well as the relationship between natural disasters and economic growth, in this research, the effect of environmental degradation as a moderating variable in the relationship between natural disasters and economic growth in countries at risk of natural disasters during the period 1990 to 2019 was investigated using panel data and the GMM estimation method. The results show that natural disasters damage economic growth in the absence of the moderating variable, but with the presence of the environmental degradation variable, the increase in economic growth is greater than natural disasters.

Keywords: economic growth; environmental degradation; natural disasters. (search for similar items in EconPapers)
Date: 2023
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