The impact of the Indian Ocean tsunami on Aceh’s long-term economic growth

Heger, Martin Philipp and Neumayer, Eric ORCID: 0000-0003-2719-7563 (2019) The impact of the Indian Ocean tsunami on Aceh’s long-term economic growth. Journal of Development Economics, 141. ISSN 0304-3878

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Abstract

Existing studies typically find that natural disasters have negative economic consequences, resulting in, at best, a recovery to trend after initial losses or, at worst, longer term sustained losses. We exploit the unexpected nature of the 2004 Indian Ocean tsunami for carrying out a quasi-experimental difference-in-differences analysis of flooded districts and sub-districts in Aceh. The Indonesian province saw the single largest aid and reconstruction effort of any developing world region ever afflicted by a natural disaster. We show that this effort triggered higher long-term economic output than would have happened in the absence of the tsunami.

Item Type:	Article
Additional Information:	© 2019 Elsevier B.V.
Divisions:	Geography & Environment
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences H Social Sciences > HC Economic History and Conditions
JEL classification:	O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output (Income) Convergence Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters
Date Deposited:	03 Jul 2019 10:00
Last Modified:	08 Nov 2024 07:45
URI:	http://eprints.lse.ac.uk/id/eprint/101115

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