Natural Disasters, Foreign Development Assistance and Economic Growth in South Asian Countries
DOI:
https://doi.org/10.61506/01.00569Keywords:
Net official development assistance, Natural disasters, Gross Domestic Product Growth, Trade, Broad money, government final consumption expenditureAbstract
Disasters caused by nature are natural occurrences. Due to global climate change, natural disasters become more frequent and destructive. Natural disasters disproportionately impact developing countries, resulting in significant economic and human casualties. We have utilized panel data from five selected South Asian nations (Pakistan, India, Nepal, Bangladesh, and Sri Lanka) spanning from 1971 to 2020 and applied the Panel ARDL and Causality test. This study examines whether foreign development assistance has a positive and statistically significant effect on economic growth. Natural disasters have a statistically significant and negative effect on economic growth. The results of the causality test indicate that each variable influences the others. Natural disasters have a detrimental effect on economic growth, which is mitigated by foreign development assistance. Government officials and planners may find some policy implications in this study.
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