2018
DOI: 10.1007/s41885-018-0033-6
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Floods and Exports: An Empirical Study on Natural Disaster Shocks in Southeast Asia

Abstract: This study analyzes the effects of climate-related disasters on international trade in Southeast Asia. We use monthly trade data to examine the relationship between disaster shocks and exports. The empirical analysis shows that natural disasters have a significant negative effect on exports. The estimation results suggest that flooding causes immediate export losses of USD 305-557 million. In addition, we find that the effect persists in the post-disaster period, with floods causing annual export losses of USD… Show more

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Cited by 20 publications
(9 citation statements)
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“…SEA includes 11 countries: Brunei, Cambodia, East Timor, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Southeast Asia is one of the most disaster-prone areas in the world [54], where earthquakes, volcano eruptions, tsunami and seasonal typhoons occur. The vast majority of SEA falls within the warm, humid tropics with plentiful rainfall.…”
Section: Study Areamentioning
confidence: 99%
“…SEA includes 11 countries: Brunei, Cambodia, East Timor, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Southeast Asia is one of the most disaster-prone areas in the world [54], where earthquakes, volcano eruptions, tsunami and seasonal typhoons occur. The vast majority of SEA falls within the warm, humid tropics with plentiful rainfall.…”
Section: Study Areamentioning
confidence: 99%
“…Disasters wreak havoc on life, property, and overall human well-being [57,58]. Years of economic development and infrastructural assets are washed off with every flooding event, particularly in the developing countries of Southeast Asia, such as India, Pakistan, and Bangladesh [59][60][61][62][63]. The difference between the developed and developing worlds in the case of managing floods lies in their complex differential socioeconomic setups [64][65][66][67][68].…”
Section: Resultsmentioning
confidence: 99%
“…Pelli and Tschopp (2017) investigated 46 countries' exports to the United States from 1980 to 2000 and concluded that hurricanes' effects on exports were monotonically increasing in comparative advantage, with industries on both ends of the comparative advantage distribution being affected most significantly. Tembata and Takeuchi (2019) estimated the annual export loss to be $305-$557 million due to flooding in Southeast Asia. Dallmann (2019) studied temperature and precipitation differences between trade partners and found chronic negative effects on labour productivity and therefore trade flows worldwide from 1992 to 2014.…”
Section: Literature Reviewmentioning
confidence: 99%