Yamamura, Eiji (2011): Institution and decomposition of natural-disaster impact on growth.
Download (375Kb) | Preview
We investigated whether natural disasters enhance efficiency improvement, capital accumulation, and technological progress. Furthermore, we examined whether the influence of natural disasters depends on the legal origin. By using long-term panel data, this paper decomposes productivity growth measured by the growth of output per labor unit into three components: efficiency improvement, capital accumulation, and technological progress. After controlling for countries’ specific unobservable characteristics and year-specific effects, we found that the impacts of natural disasters vary according to specifications. Natural disasters enhance capital accumulation and technological progress in non-French-civil-law countries, but have no effect in these areas in French-civil-law countries.
|Item Type:||MPRA Paper|
|Original Title:||Institution and decomposition of natural-disaster impact on growth|
|Keywords:||Institution, DEA, Natural disaster|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters; Global Warming
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology
B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B15 - Historical; Institutional; Evolutionary
|Depositing User:||eiji yamamura|
|Date Deposited:||22. Dec 2011 21:20|
|Last Modified:||15. Feb 2013 21:12|
Acemoglu, D, J. Simon, and J. Robinson. “The colonial origins of comparative development: an empirical investigation.” American Economic Review, 91(5), 2001, 1369–401.
――――. “Reversal of fortune: geography and institutions in the making of the modern world income distribution.” Quarterly Journal of Economics, 117(4), 2002, 1231–94.
Acemoglu, D., S. Johnson, J. Robinson, and Y. Thaicharoen. “Institutional causes, macroeconomic symptoms: volatility, crisis and growth.” Journal of Monetary Economics, 50(1), 2003, 49–123.
Anbarci, N., M. Escaleras, and C.A. Register. “Earthquake fatalities: the interaction of nature and political economy.” Journal of Public Economics, 89, 2005, 1907–33.
Banker, R. D. A., A. Charnes, and W. W.Cooper. “Models for Estimating Technical and Scale Efficiencies.” Management Science, 30, 1984, 1078–92.
Bordo, M. D. "Growing up to financial stability," NBER working paper 12993, 2007.
Bordo, M. D., M. J. Dueker., D. C. Wheelock. "Aggregate Price Shocks and Financial Instability: A Historical Analysis," Economic Inquiry, 40(4), 2002, 521–38.
Cavallo, A. and E. Cavallo. “Are crises good for long-term growth? The role of political institutions.” Journal of Macroeconomics, 32(3), 2010, 838–57.
Cavallo, E. and I. Noy. “The economics of natural disasters—a survey.” Working Paper 200919, University of Hawaii at Manoa, Department of Economics, 2009.
Cavallo, E., A. Powell, and O. Becerra. “Estimating the direct economic damages of the earthquake in Haiti.” Economic Journal, 120, 2010, F298–F312.
Cooper W. W., M. S. Lawrence, and K. Tone. Data Envelopment Analysis. Boston: Kluwer Academic Press, 2000. Crespo-Cuaresma, J., J. Hlouskova, and M. Obersteiner. “Natural Disasters as Creative Destruction? Evidence from Developing Countries,” Economic Inquiry. 2008, 46(2): 214–26.
Drazen, A. Political Economy in Macroeconomics. Princeton, Princeton University Press, 2002.
Du, J. “Institutional quality and economic crisis: legal origin theory versus coronial strategy theory.” Review of Economics and Statistics, 92(1), 2010, 173–9.
Easterly, W., and R. Levine. "Africa's growth tragedy: policies and ethnic divisions." Quarterly Journal of Economics 112(4), 1997, 1203-50.
EM-DAT: The OFDA/CRED International Disaster Database, http://www.emdat.be/advanced-search, Université Cathorique de Louvain, Brussels, Belgium (last accessed 22 July 2011).
Escaleras, M., N. Anbarci, and C.A. Register. “Public sector corruption and major earthquakes: a potentially deadly interaction.” Public Choice, 132(1), 2007, 209–30.
Escaleras, M. and C. A. Register. “Natural Disasters and Foreign Direct Investment.” Land Economics, 87(2), 2011, 346-63.
――――. “Fiscal Decentralization and Natural Disaster Risks.” Forthcoming in Public Choice, 2012.
Färe R., S. Grosskopf., M. Norris, and Z. Zhang. “Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries.” American Economic Review, 84, 1994, 66-83.
Färe R., S. Grosskopf, and P. Roos. “On two Definitions of Productivity.” Economics Letters, 53, 1996, 269-74.
Henderson, J. D. and R. R. Russell. “Human capital and convergence: a production-frontier approach.” International Economic Review. 46, 2005, 1167-205.
Johnson, S., P. Boone, A. Breach, and E. Friedman, “Corporate Governance in the Asian Financial Crisis,” Journal of Financial Economics, 58, 2000, 141–86.
Kahn, M. E. “The death toll from natural disasters: the role of income, geography and institutions.” Review of Economics and Statistics, 87(2), 2005, 271–284.
Kellenberg, D. and A. M. Mobarak. “Does rising income increase or decrease damage risk from natural disasters?” Journal of Urban Economics, 63, 2008, 788–802.
Kumar, S. and R. Russell. “Technological Change, Technological Catch-up, and Capital Deepening: Relative Contributions to Growth and Convergence.” American Economic Review, 92, 2002, 527-48.
La Porta, R., Lopez de Silanes, F., Shleifer, A., and Vishni, R. “Legal deterrents of external finance.” Journal of Finance, 57(3), 1997, 1131–50.
――――. “Law and finance.” Journal of Political Economy 106(6), 1998, 1113–1150.
――――. “Quality of government.” Journal of Law, Economics and Organization 15(1), 1999, 222–79.
La Porta, R., Lopez de Silanes, F., and Shleifer, A. “The economic consequence of legal origins.” Journal of Economic Literature 46(2), 2008, 285–332.
Levine, R. “The legal environment, banks, and long-run economic growth.” Journal of Money, Credit and Banking 30(3), 1998, 596-613.
Rajan, R. G., and L. Zengales. “Financial development and growth.” American Economic Review 88, 1998, 559–86.
Ramey, G. and V. A. Ramey. “Cross-country evidence on the link between volatility and growth,” American Economic Review 85(5), 1995, 1138–51.
Salvatore, B. “Standardized income inequality data for use in cross-national research.” Sociological Inquiry, 77, 2008, 3–22.
Schumpeter, J. The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, and Business Cycle. New York: Oxford University Press, 1912.
Skidmore, M. and H. Toya. “Do natural disasters promote long-run growth?” Economic Inquiry, 40(4), 2002, 664–87.
Strobl, E. “The economic growth impact of hurricanes: evidence from U.S. coastal counties.” Review of Economics and Statistics, 93(2), 2011, 575–89.
Toya, H. and M. Skidmore. “Economic development and the impacts of natural disasters.” Economics Letters, 94, 2007, 20–5.
United Nations. Natural Hazards, Unnatural Disasters: The Economics of Effective Prevention. Washington, DC.: The World Bank, 2010.
World Bank. World Development Indicators 2010 on CD-ROM. Washington, DC: The World Bank, 2010.
Yamamura, E. "Effects of interactions among social capital, income and learning from experiences of natural disasters: a case study from Japan." Regional Studies, 44(8), 2010, 1019–32.
――――. "Decomposition of the effect of government size on growth." Economics Letters, 112(3), 2011, 230–2.
Yamamura, E. & Shin, I. “Technological Change and Catch-up and Capital deepening: Relative Contributions to Growth and Convergence: Comment.” Economics Bulletin, 15 (3), 2007a, 1–8.
――――. “Dynamics of Agglomeration Economies and Regional Industrial Structure: The Case of the Assembly Industry of the Greater Tokyo Region, 1960-2000.” Structural Change and Economic Dynamics, 18, 2007b 483–99.
――――. “The Benefit of Efficiency Improvement on Growth and Convergence: A Study using Japan Panel Data.” Economics Letters, 99(1), 2008, 209-2011.
Zheng, J., X. Liu., and A. Bigsten. “Ownership Structure and Determinants of Technical Efficiency: An Application of Data Envelopment Analysis to Chinese Enterprises (1986-1990).” Journal of Comparative Economics, 26, 1998, 465–84.
――――. “Efficiency, Technical Progress, and Best Practice in Chinese State Enterprises (1980-1994).” Journal of Comparative Economics, 31, 2003, 134–52.