Economic impact of natural disasters, spillovers, and role of human development: case of Indonesia

Esa Azali Asyahid () and Immanuel Pekerti
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Esa Azali Asyahid: Universitas Gadjah Mada

Letters in Spatial and Resource Sciences, 2022, vol. 15, issue 3, No 11, 493-506

Abstract: Abstract We investigate how natural disaster damages affect regional economic growth and their spatial spillover effect in various human development (HDI) level settings by utilising a panel annual district-level dataset from Indonesia. We employ Spatial Durbin Model to achieve these objectives. We find that disaster damage to houses has a negative effect on district-level per capita output growth. Meanwhile, the effect of disaster damage to people on economic growth depends on their HDI level, with low-HDI districts affected negatively and high-HDI districts positively. Our analysis also finds spatial spillover effects on neighbouring regions’ growth, and heterogeneous effects across economic sectors.

Keywords: Natural disaster; Regional economic growth; Indonesia; Spatial Durbin model (search for similar items in EconPapers)
JEL-codes: O47 Q54 R11 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s12076-022-00307-7

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