The impact of human development on natural disaster fatalities and damage: panel data evidence

Jaharudin Padli, Muzafar Shah Habibullah and Abdul H. Baharom

Economic Research-Ekonomska Istraživanja, 2018, vol. 31, issue 1, 1557-1573

Abstract: Countries with high levels of human development should be able to reduce the impact of natural disasters in terms of the total numbers of people killed and affected, and damage. In this study we investigate the impact of human development indicators such as income per capita and human capital (education level) on natural disaster fatalities (total deaths, total affected and total economic losses) in 79 selected countries. Using dynamic panel data analysis, we found that the level of economic development plays an important role in mitigating the impact of natural disasters such as droughts, earthquakes, extreme temperatures, floods, storms, volcanoes, landslides and wildfires. Other factors that are found to determine the number of natural disaster fatalities include population, population density, unemployment, investment, government consumption, openness, education and corruption. Using the dynamic panel data model, we found that education, investment, government consumption and openness display an inverse relationship, while population and population density have a direct positive relationship.

Date: 2018
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DOI: 10.1080/1331677X.2018.1504689

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