Regional Effects of Natural Disasters in China

Tam Bang Vu and Ilan Noy

No 18776, Working Paper Series from Victoria University of Wellington, School of Economics and Finance

Abstract: We examine the effects of natural disasters on income and investment in China. Using detailed macroeconomic province-level data and their history of disaster exposure over the past two decades, and after accounting for two-way causality using a three-stage least-squares estimation procedure, we describe the relationship between disaster mortality and morbidity, disasters’ economic damages, government investment and regional economic activity and infrastructure development. The Chinese government’s aggressive investment in post-disaster reconstruction is discussed, and the implications of this investment for post-disaster private sector economic activity are analyzed empirically. We further investigate the differential effects of natural disasters on economic activity in the different provinces.

Keywords: China; Natural disasters; Environment; Investment; Recovery (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:vuw:vuwecf:18776

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