Natural disasters and gross capital formation in Southeastern Asia
Natural disasters and gross capital formation in Southeastern Asia

Summary/Abstract: The purpose of this paper is to examine the influence of the occurrence of natural disasters on the growth rate of physical capital accumulation in countries of Southeastern Asia with high catastrophic risk, i.e. Indonesia, Malaysia, Cambodia, Thailand, Vietnam and The Philippines. In the article, the consequences of natural disasters are presented, as well as the aspects of accumulation of physical capital within years 1990-2014. Presented data shows that the number of natural disasters, associated losses, as well as the level of physical capital all have increased over time in six considered countries. In order to check Granger causality, Wald test was performed for yearly data. It is shown, that in all countries but Thailand, the damages caused by natural disasters in the past have impact on the accumulation of physical capital. Such an outcome may be the result of the reconstruction process undertaken after disasters.

• Details
• Contents