Fiscal Repercussions of Natural Disasters: Stylized Facts and Panel Data Evidences from India

Panwar, Vikrant; Sen, Subir

doi:10.1061/(asce)nh.1527-6996.0000369

Cited by 19 publications

(15 citation statements)

References 44 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…According to Panwar and Sen (2020a), who conducted their research across 24 Indian states using a panel vector auto-regression model, floods severely hamper the growth of all economic sectors in the short run, except the agriculture sector. Further, in another paper, Panwar and Sen (2020b) The literature identifies the following findings summarised here to conclude the current section. There is a mixed bag of evidence regarding the influence of floods on economic growth.…”

Section: Empirical Literature On Floods and Economic Growthmentioning

confidence: 70%

“…Amarasinghe et al. (2020), Panwar and Sen (2020a, b) and Parida et al. (2020a, b) are amongst the researchers who have documented the relationship between floods and economic growth in India (Table 1).…”

Section: Literature Reviewmentioning

confidence: 99%

“…According to Panwar and Sen (2020a), who conducted their research across 24 Indian states using a panel vector auto-regression model, floods severely hamper the growth of all economic sectors in the short run, except the agriculture sector. Further, in another paper, Panwar and Sen (2020b) analysed the effects of floods on 24 states of India. They suggested that a minimum of 5–6 years are needed for regaining economic growth after the floods.…”

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Floods and economic growth in India: role of FDI inflows and foreign aid

Kumar

Kumari

Sahu

2022

MEQ

View full text Add to dashboard Cite

PurposeThe paper aims to examine the effects of floods on economic growth in India from 1980 to 2019, taking into account the role of foreign direct investment (FDI) inflows and foreign aid.Design/methodology/approachThe study uses augmented Dickey–Fuller (ADF) and Phillip–Perron (PP) tests to determine the stationarity of the variables. Several models, including autoregressive distributed lag (ARDL), fully modified ordinary least square (FMOLS), dynamic ordinary least square (DOLS) and canonical cointegration regression (CCR), are used to examine the impact of floods on economic growth.FindingsThe bounds test determines the long-term relationship between floods, FDI inflows, economic growth and foreign aid. According to the ARDL and FMOLS models, floods have a negative long-term and short-term impact on India’s economic growth. Furthermore, FDI inflows and foreign aid are beneficial to economic growth. The findings of the ARDL and FMOLS models are confirmed by the DOLS and CCR models. Granger causality establishes a unidirectional causality that extends from floods to economic growth. Further diagnostic tests show that the estimates are free of heteroskedasticity, serial correlation and parameter instability.Practical implicationsIndian government needs to invest more in research and development on flood management techniques. Institutional strengthening is also required to implement pre- and post-flood prevention measures properly. Sound disaster financing strategy and proper water bodies management should be prioritised. Foreign investment opportunities should be encouraged by strengthening international relations.Originality/valueThis is the first time-series study that analysed the effects of floods on economic growth in India. Moreover, the paper contributes to floods literature by applying several econometric models for robustness check.

show abstract

Section: Empirical Literature On Floods and Economic Growthmentioning

confidence: 70%

Section: Literature Reviewmentioning

confidence: 99%

“…According to Panwar and Sen (2020a), who conducted their research across 24 Indian states using a panel vector auto-regression model, floods severely hamper the growth of all economic sectors in the short run, except the agriculture sector. Further, in another paper, Panwar and Sen (2020b) analysed the effects of floods on 24 states of India. They suggested that a minimum of 5–6 years are needed for regaining economic growth after the floods.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Floods and economic growth in India: role of FDI inflows and foreign aid

Kumar

Kumari

Sahu

2022

MEQ

View full text Add to dashboard Cite

show abstract

“…Direct costs of responding to an emergency can also be obtained from government spending on health and emergency services, on emergency grants to local administrations and on increased social support funding. Panwar and Sen (2020) found a clear signal of increased Indian government spending, increased debt and decreased tax revenue in the 2 years following major flooding events.…”

Section: Impact Relationships: Identifying Pathways From Hazards To P...mentioning

confidence: 99%

Connecting Hazard and Impact: A Partnership between Physical and Human Science

Robbins

Ruin²,

Golding

et al. 2022

Towards the “Perfect” Weather Warning

View full text Add to dashboard Cite

The bridge from a hazard to its impact is at the heart of current efforts to improve the effectiveness of warnings by incorporating impact information into the warning process. At the same time, it presents some of the most difficult and demanding challenges in contrasting methodology and language. Here we explore the needs of the impact scientist first, remembering that the relevant impacts are those needed to be communicated to the decision maker. We identify the challenge of obtaining historical information on relevant impacts, especially where data are confidential, and then of matching suitable hazard data to them. We then consider the constraints on the hazard forecaster, who may have access to large volumes of model predictions, but cannot easily relate these to the times and locations of those being impacted, and has limited knowledge of model accuracy in hazardous situations. Bridging these two requires an open and pragmatic approach from both sides. Relationships need to be built up over time and through joint working, so that the different ways of thinking can be absorbed. This chapter includes examples of partnership working in the Australian tsunami warning system, on health impact tools for dispersion of toxic materials in the UK and on the health impacts of heatwaves in Australia. We conclude with a summary of the characteristics that contribute to effective impact models as components of warning systems, together with some pitfalls to avoid.

show abstract

“…Instead of using cross-country comparisons, a spate of recent studies have looked at sub-national fiscal aggregate spending, e.g., Miao et al (2020) for China's provinces, Panwar & Sen (2020) for India's states, Karim & Noy (2020) for Bangladesh's sub-districts, Jerch et al (2020) for US counties, and Unterberger (2018) for municipalities in Austria. We do the same for Japan, but, in contrast with these earlier papers, emphasize a detailed examination of the separate budget categories within the local fiscal accounts.…”

Section: Introductionmentioning

confidence: 99%

The Fiscal Costs of Earthquakes in Japan

2021

View full text Add to dashboard Cite

We investigate the fiscal impacts of earthquakes in Japan. In contrast with earlier papers from elsewhere which examine national level aggregate spending, we are able to provide a detailed examination of separate budget categories within the local governments' fiscal accounts. We do this using detailed line-budget expenditure data, and by comparing regions and towns affected and unaffected by the damage from earthquakes. Besides the obvious -that government spending increases in the short-term (one year) after a disaster event -the results we present suggest that the share of public spending on disaster relief, at the prefecture level, increases significantly, but with no corresponding change in the other budget lines. In contrast, at the lower administrative units we observe a decrease in the share of spending going to finance other priorities. For the bigger cities, we observe a decrease in the share of spending targeting education, while for the smaller towns, we find that spending on construction and servicing public debt goes down. This evidence suggests that while at the prefecture level fiscal policy-making is robust enough to prevent presumably unwanted declines in public services, the same cannot be said for the city/town level. JEL-Codes: H840, Q540.

show abstract

Fiscal Repercussions of Natural Disasters: Stylized Facts and Panel Data Evidences from India

Cited by 19 publications

References 44 publications

Floods and economic growth in India: role of FDI inflows and foreign aid

Floods and economic growth in India: role of FDI inflows and foreign aid

Connecting Hazard and Impact: A Partnership between Physical and Human Science

The Fiscal Costs of Earthquakes in Japan

Contact Info

Product

Resources

About