Arbeitspapier

Natural catastrophes and financial development: An empirical analysis

We estimate the causal effect of natural catastrophes on financial development. We focus on largest catastrophes in developing economies in 1960-2016, employ synthetic control method to compute the counterfactual and use the credit to GDP ratio as the measure of financial development. Our estimates show that the effects of natural catastrophes are sizable, statistically significant and long-lasting. We find that a decade after the catastrophe, credit/GDP ratio remains approximately 30% below its counterfactual. This result suggests that large-scale natural catastrophes severely undermine financial intermediation in developing economies.

Sprache
Englisch

Erschienen in
Series: IES Working Paper ; No. 14/2020

Klassifikation
Wirtschaft
Financial Economics: General
Macroeconomic Analyses of Economic Development
Climate; Natural Disasters and Their Management; Global Warming
Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
Thema
Natural catastrophes
financial development
synthetic control method

Ereignis
Geistige Schöpfung
(wer)
Horváth, Roman
Ereignis
Veröffentlichung
(wer)
Charles University in Prague, Institute of Economic Studies (IES)
(wo)
Prague
(wann)
2020

Handle
Letzte Aktualisierung
20.09.2024, 08:21 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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Objekttyp

  • Arbeitspapier

Beteiligte

  • Horváth, Roman
  • Charles University in Prague, Institute of Economic Studies (IES)

Entstanden

  • 2020

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