Natural Hazards and Financial Development in Sub-Saharan Africa: The Moderating Role of the Stage of Development

Charles Morrison (), John Gartchie Gatsi (), Samuel Kwaku Agyei () and Mac Junior Abeka ()
Additional contact information
Charles Morrison: Cape Coast Technical University
John Gartchie Gatsi: University of Cape Coast
Samuel Kwaku Agyei: University of Cape Coast
Mac Junior Abeka: University of Cape Coast

Economics of Disasters and Climate Change, 2025, vol. 9, issue 1, No 5, 135-163

Abstract: Abstract The rise in natural hazards and disasters has necessitated understanding their impact on affected regions. Employing data from the Emergency Event Database over the period 1990–2019 and the Generalized Method of Moment estimation technique, this study examined the effect of flood, drought, storms, and aggregate natural hazards on financial institution development, financial market development and overall financial development as well as the moderating role of the stage of development on the natural hazards-financial development nexus in Sub-Saharan Africa. Our results reveal that natural hazards negatively affect financial development in Sub-Saharan Africa. Also, the stage of development significantly moderated the relationships for most of the models. This study recommends that financial sector regulators pay attention to natural disasters in terms of policies and regulatory frameworks. Further, policies to address the negative effect of natural disasters on financial development must consider the stage of development.

Keywords: Natural disasters; Financial development; Stage of development; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s41885-024-00164-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:ediscc:v:9:y:2025:i:1:d:10.1007_s41885-024-00164-2

Ordering information: This journal article can be ordered from
https://www.springer ... mental/journal/41885

DOI: 10.1007/s41885-024-00164-2

Access Statistics for this article

Economics of Disasters and Climate Change is currently edited by Ilan Noy and Shunsuke Managi

More articles in Economics of Disasters and Climate Change from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().