Natural Disasters and International Financial Accessibility in Developing Countries*

Jiyoun An () and Bokyeong Park ()
Additional contact information
Jiyoun An: College of International Studies Kyung Hee University 1732 Deogyoung-daero Giheung-gu, Yongin-si, Republic of Korea
Bokyeong Park: Graduate School of Pan-Pacific International Studies Kyung Hee University 1732 Deogyoung-daero Giheung-gu, Yongin-si, Republic of Korea

Asian Economic Papers, 2019, vol. 18, issue 1, 245-261

Abstract: This study examines the impact of natural disasters on affected countries’ accessibility to international financial resources. We find empirical evidence that natural disasters significantly downgrade the sovereign credit rating of an affected country, an indicator of international financial accessibility. This finding is robust in developing countries, implying that they are faced with additional difficulties in financing post-disaster recovery costs compared with developed countries. Among disasters, droughts and storms display a particularly significant downgrading effect. Further results show that foreign aid from the international community helps to improve the accessibility, implying a possible acceleration of the post-disaster recovery in recipient countries.

Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/asep_a_00682 (application/pdf)
Access to PDF is restricted to subscribers.

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:tpr:asiaec:v:18:y:2019:i:1:p:245-261

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=1535-3516

Access Statistics for this article

Asian Economic Papers is currently edited by Wing Thye Woo, Sungbae An, Fukunari Kimura and Ming Lu

More articles in Asian Economic Papers from MIT Press
Bibliographic data for series maintained by The MIT Press ().