The effect of natural and man-made disasters on countries’ production efficiency

George Halkos, Shunsuke Managi, Nickolaos G. Tzeremes

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

This study intends to understand how disaster is related to countries’ production efficiency using a sample of 137 countries over 1980–2011. We analyze the effect of the number of man-made and natural disaster occurrences on countries’ technological change (swift of the frontier) and technological catch-up (distribution of efficiencies). The results reveal an inverted “U” shape relationship between countries’ technological change and technological catch-up with disaster occurrences. This finding suggests that the effect on countries’ production efficiency is positive for lower number of disaster events; however, after a specific threshold value, the effect becomes negative. The results also reveal that low-income countries are negatively affected much quicker compared to high-income countries. Finally, it is evident that the negative effect of disaster occurrences impacts first countries’ technological catch-up and then their technology change.

Original languageEnglish
Article number10
JournalJournal of Economic Structures
Volume4
Issue number1
DOIs
Publication statusPublished - Dec 1 2015

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Disaster
Production efficiency
Man-made disasters
Technological catch-up
Technological change
Natural disasters
Income
Technology change
Low-income countries
Inverted-U

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)

Cite this

The effect of natural and man-made disasters on countries’ production efficiency. / Halkos, George; Managi, Shunsuke; Tzeremes, Nickolaos G.

In: Journal of Economic Structures, Vol. 4, No. 1, 10, 01.12.2015.

Research output: Contribution to journalArticle

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