DO NATURAL DISASTERS INCREASE FINANCIAL RISKS? AN EMPIRICAL ANALYSIS

  • Chun-Ping Chang Shih Chien University
  • Li Wan Zhang Xian Jiao Tong university
DOI: https://doi.org/10.21098/bemp.v23i0.1258
Keywords: Natural Disaster, Financial Risks, Fixed Effects Model, Panel Unit Root Test

Abstract

Using an unbalanced panel data consisting of deaths from natural disasters and five factors of financial risks in 136 countries, this paper analyzes the effect of natural disasters on different financial risks. The conclusions are as follows: (1) natural disasters lead to financial crisis by reducing GDP and trade and increasing domestic and foreign debt; (2) the effects of natural disasters on financial risks are dynamic and long term, with the effect weakening with time; and (3) the negative effects of natural disasters on financial risks in high-income and OECD countries are smaller than those of low-income and non-OECD countries.

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Published
2020-01-31
How to Cite
Chang, C.-P., & Zhang, L. (2020). DO NATURAL DISASTERS INCREASE FINANCIAL RISKS? AN EMPIRICAL ANALYSIS. Buletin Ekonomi Moneter Dan Perbankan, 23, 61 - 86. https://doi.org/10.21098/bemp.v23i0.1258
Issue
Vol 23 (2020): 13th BMEB Call for Papers Special Issue
Section
Articles

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Creative Commons License

Buletin Ekonomi Moneter dan Perbankan / Bulletin of Monetary Economics and Banking is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.