Quality infrastructure and natural disaster resiliency: A panel analysis of Asia and the Pacific

Farhad Taghizadeh-Hesary (), Tapan Sarker, Naoyuki Yoshino (), Aline Mortha and Xuan Vinh Vo

Economic Analysis and Policy, 2021, vol. 69, issue C, 394-406

Abstract: In this study, we assess the impact of quality infrastructure, development, and corruption on damage caused by a natural disaster using panel data from 14 Asia and the Pacific countries for 2007–2017. Employing the generalized method of moments and vector error correction model, this study’s main contribution to the literature lies in the quantification of the role of quality infrastructure in disaster impact mitigation. The empirical results prove that even if disaster intensity remains the most important factor in explaining damage, this effect is short-lived. At the same time, quality infrastructure significantly reduces damage in the long-term and is the variable with the largest magnitude. A higher level of development indicators, measured by gross domestic product per capita, and control of corruption, are also shown to reduce damage linked to natural disasters. Our study suggests that improving the quality of infrastructure can be effective in mitigating the impact of disasters. We also propose financial schemes such as public–private cooperation and innovative schemes to promote the construction of quality infrastructure.

Keywords: Disaster resiliency; Disaster risk financing; Quality infrastructure; Disaster risk management; Spillover effect (search for similar items in EconPapers)
JEL-codes: H54 H84 O18 Q54 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:69:y:2021:i:c:p:394-406

DOI: 10.1016/j.eap.2020.12.021

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