The Relationship Between Natural Disasters and Economic Growth in Türkiye
Öz
Natural disasters significantly affect the physical, environmental, and social dynamics of societies, leading to substantial loss of life and property while disrupting economic activity. Additionally, they can result in long-term economic setbacks by causing lasting changes to both physical and human capital. The scale, severity, and economic impacts of natural disasters vary depending on a country's level of development. This highlights the existence of a relationship between natural disasters and development levels, emphasizing the need for economic research to explain this relationship. Such studies can contribute to a better understanding of the dynamics and aid in future planning. This study aims to analyze the relationship between natural disaster-induced damages and economic growth in Türkiye during the period 1960–2017, utilizing the ARDL bounds testing approach. The findings reveal a negative and statistically significant relationship between natural disaster losses and economic growth in both the short and long run. Moreover, long-term analyses show that capital stock and labour force are key determinants of economic growth. These results show that disasters have significant negative effects not only at the physical level but also at the macroeconomic level, highlighting the need to promote capital accumulation and improve the quality of the labour force for the sustainability of economic growth.
Anahtar Kelimeler
Natural disaster, Economic growth, Turkish economy, ARDL bounds test
Kaynakça
- AFAD. (2014). Annotated dictionary of disaster management terms. Prime Ministry Disaster and Emergency Management Presidency.
- AFAD. Disaster and Emergency Management Presidency. https://www.afad.gov.tr
- Albala-Bertrand, J. M. (1993). Political economy of large natural disasters: With special reference to developing countries. Oxford University Press.
- Ahlerup, P. (2013). Are natural disasters good for economic growth? University of Gothenburg Working Papers in Economics, (No. 553). University of Gothenburg, School of Business, Economics and Law.
- Ayoo, C. A. A. (2005). Three essays on the economics of natural disasters (Doctoral dissertation). Department of Agricultural Economics & Business, University of Guelph.
- Benson, C. (1997). The economic impact of natural disasters in Fiji. Overseas Development Institute (ODI) Working Paper, (No. 97).
- Cavallo, E., & Noy, I. (2009). The economics of natural disasters: A survey. IDB Working Paper Series, (No. IDB-WP-124), 5–50.
- Cavallo, E., Powell, A., & Becerra, O. (2010). Estimating the direct economic damage of the earthquake in Haiti. Inter-American Development Bank Working Paper Series, (No. 163), 2–16.
- Cavallo, E., Galiani, S., Noy, I., & Pantano, J. (2010). Catastrophic natural disasters and economic growth. Inter-American Development Bank Research Department Series Working Papers, (No. IDB-WP-183), 1–31.
- Chhibber, A., & Laajaj, R. (2008). Disasters, climate change and economic development in Sub-Saharan Africa: Lessons and directions. Journal of African Economies, 17(Suppl. 2), ii7–ii49. [CrossRef]