TY - JOUR
T1 - The effect of natural and man-made disasters on countries’ production efficiency
AU - Halkos, George
AU - Managi, Shunsuke
AU - Tzeremes, Nickolaos G.
N1 - Funding Information:
This paper was supported by Grant-in-Aid for Specially Promoted Research (26000001) by Japan Society for the Promotion of Science. Moreover, the authors would like to thank two anonymous reviewers for their helpful and constructive comments on an earlier version of our manuscript. Any remaining errors are solely the authors’ responsibility.
Publisher Copyright:
© 2015, Halkos et al.
PY - 2015/12/1
Y1 - 2015/12/1
N2 - This study intends to understand how disaster is related to countries’ production efficiency using a sample of 137 countries over 1980–2011. We analyze the effect of the number of man-made and natural disaster occurrences on countries’ technological change (swift of the frontier) and technological catch-up (distribution of efficiencies). The results reveal an inverted “U” shape relationship between countries’ technological change and technological catch-up with disaster occurrences. This finding suggests that the effect on countries’ production efficiency is positive for lower number of disaster events; however, after a specific threshold value, the effect becomes negative. The results also reveal that low-income countries are negatively affected much quicker compared to high-income countries. Finally, it is evident that the negative effect of disaster occurrences impacts first countries’ technological catch-up and then their technology change.
AB - This study intends to understand how disaster is related to countries’ production efficiency using a sample of 137 countries over 1980–2011. We analyze the effect of the number of man-made and natural disaster occurrences on countries’ technological change (swift of the frontier) and technological catch-up (distribution of efficiencies). The results reveal an inverted “U” shape relationship between countries’ technological change and technological catch-up with disaster occurrences. This finding suggests that the effect on countries’ production efficiency is positive for lower number of disaster events; however, after a specific threshold value, the effect becomes negative. The results also reveal that low-income countries are negatively affected much quicker compared to high-income countries. Finally, it is evident that the negative effect of disaster occurrences impacts first countries’ technological catch-up and then their technology change.
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U2 - 10.1186/s40008-015-0019-2
DO - 10.1186/s40008-015-0019-2
M3 - Article
AN - SCOPUS:85017188569
SN - 2193-2409
VL - 4
JO - Journal of Economic Structures
JF - Journal of Economic Structures
IS - 1
M1 - 10
ER -