Are Natural Disasters Good for Economic Growth?
Natural disasters plague the populations of many countries, and the international commu- nity often seeks to alleviate the human suffering by means of humanitarian aid. Do natural disasters also have negative effects on aggregate economic growth? This paper shows that natural disasters on average have a positive association with subsequent economic performance. This overall positive association is driven by the experience of democratic developing countries that receive humanitarian aid.
JEL Classification: O11; Q54; H84