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A Robust Analysis of the Relationship between Natural Disasters, Electricity and Economic Growth in 41 Countries

Nadia Benali and Kais Saidi
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Nadia Benali and Kais Saidi: University of Sfax

Journal of Economic Development, 2017, vol. 42, issue 3, 89-109

Abstract: In this paper, our objective is to investigate the relationship between natural disasters (droughts, floods, earthquakes, and storms), electricity and other variables macroeconomic for 41 countries over the period 1990?2014. The Panel data and Granger causality-VECM used in this paper over the period 1990?2014. The analysis finds that, the impact of natural disasters is negative and stronger on developing than on developed countries. Second, the test of causality shows that both in short term and long term there is a unidirectional relationship running from disaster measures to electricity consumption. In the long term, we note the existence of a unidirectional causal relationship ranging from disaster measures to GDP per capita.

Keywords: Natural Disaster; Economic Growth; Electricity Consumption; Panel Data; Granger Causality-VECM (search for similar items in EconPapers)
JEL-codes: Q54 O16 Q4 C23 C22 (search for similar items in EconPapers)
Date: 2017
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