Using an unbalanced panel data consisting of deaths from natural disasters and five factors of financial risks in 136 countries, this paper analyzes the effect of natural disasters on different financial risks. The conclusions are as follows: (1) natural disasters lead to financial crisis by reducing GDP and trade and increasing domestic and foreign debt; (2) the effects of natural disasters on financial risks are dynamic and long term, with the effect weakening with time; and (3) the negative effects of natural disasters on financial risks in high-income and OECD countries are smaller than those of low-income and non-OECD countries.
Chang, Chun-Ping and Zhang, Li Wan
"DO NATURAL DISASTERS INCREASE FINANCIAL RISKS? AN EMPIRICAL ANALYSIS,"
Bulletin of Monetary Economics and Banking: Vol. 23:
0, Article 4.
Available at: https://bulletin.bmeb-bi.org/bmeb/vol23/iss0/4