Macroeconomic impact of natural disasters on a small island economy: evidence from a CGE model

Natural disasters are common in the Pacific Island countries. Fiji has been affected by many of these disasters. The most recent cyclone exerted substantial damage to infrastructure, agricultural and industrial activity in Fiji. The aim of this article is to incorporate these damages into Fiji'...

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Published in:Applied economics letters 2003-09, Vol.10 (11), p.721-723
Main Author: Narayan, P. K.
Format: Article
Language:English
Subjects:
Applied economics
Economics
Equilibrium
Fiji
Industry
Islands
Macroeconomics
Natural disasters
Public infrastructure
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description Natural disasters are common in the Pacific Island countries. Fiji has been affected by many of these disasters. The most recent cyclone exerted substantial damage to infrastructure, agricultural and industrial activity in Fiji. The aim of this article is to incorporate these damages into Fiji's computable general equilibrium model and examine the short-run macroeconomic impact. Among the key results, it is found that cyclones negatively impact private income, consumption, savings, real GDP and real national welfare.
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source International Bibliography of the Social Sciences (IBSS); Business Source Ultimate; EBSCOhost Econlit with Full Text; Taylor and Francis Social Sciences and Humanities Collection
subjects Applied economics
Economics
Equilibrium
Fiji
Industry
Islands
Macroeconomics
Natural disasters
Public infrastructure
title Macroeconomic impact of natural disasters on a small island economy: evidence from a CGE model
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