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Debt, Growth and Natural Disasters A Caribbean Trilogy

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by Sebastian Acevedo Mejia
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Debt, Growth and Natural Disasters A Caribbean Trilogy by Sebastian Acevedo Mejia

This paper seeks to determine the effects that natural disasters have on per capita GDP and on the debt to GDP ratio in the Caribbean. Two types of natural disasters are studied –storms and floods– given their prevalence in the region, while considering the effects of both moderate and severe disasters. I use a vector autoregressive model with exogenous natural disasters shocks, in a panel of 12 Caribbean countries over a period of 40 years. The results show that both storms and floods have a negative effect on growth, and that debt increases with floods but not with storms. However, in a subsample I find that storms significantly increase debt in the short and long run. I also find weak evidence that debt relief contributes to ease the negative effects of storms on debt.

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Ebook Details
Pages: 47
Size: 894 KB
Publisher: INTERNATIONAL MONETARY FUND
Date published:   2014
ISBN: 9781498333740 (DRM-EPUB)

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This product is listed in the following categories:

Nonfiction > Social Science
Nonfiction > Social Science > Disasters & Disaster Relief

This author has products in the following categories:

Nonfiction > Social Science
Nonfiction > Social Science > Disasters & Disaster Relief
Nonfiction > Business & Economics > Economics
Nonfiction > Business & Economics > International > Economics
Nonfiction > Business & Economics > Economics > Macroeconomics

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05/25/2017
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