Do remittances dampen the effect of natural disasters on output growth volatility in developing countries?

Abstract : This article examines whether or not remittance inflows help mitigate the effects of natural disasters on the volatility of the real output per capita growth rate. Using a large sample of developing countries and mobilizing a dynamic panel data framework, it uncovers a diminishing macroeconomic destabilizing consequence of natural disasters as remittance inflows rise. It appears that the effect of natural disasters disappears for a remittance ratio above 8% of the Gross Domestic Product (GDP). However, remittances aggravate the destabilizing effects of natural disasters when they exceed 17% of the GDP. Finally, the article shows that current and lagged remittance inflows significantly reduce the number of people killed by natural disasters and the number of people affected, respectively.
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https://halshs.archives-ouvertes.fr/halshs-00913613
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Submitted on : Wednesday, December 4, 2013 - 10:02:54 AM
Last modification on : Wednesday, December 12, 2018 - 12:04:01 PM

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Jean-Louis Combes, Christian Hubert Ebeke. Do remittances dampen the effect of natural disasters on output growth volatility in developing countries?. Applied Economics, Taylor & Francis (Routledge), 2013, 45 (16), pp.2241-2254. ⟨halshs-00913613⟩

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