Quantitative Estimation of the Domestic Economic Ripple Effect of Foreign Disaster: The Case of China

Abstract

In the past, damage from natural disasters was limited to the country directly affected, but as the world becomes one economic community, instances of damage spreading to other countries are increasing. Nonetheless, there has been insufficient research on the ripple effect of foreign disaster. This study thus analyzed the ripple effect on the domestic economy from foreign disaster, using a disaster scenario based on cases of China. The ripple effect was quantitatively calculated using an industry input coefficient. The results show that the direct damage was 0.08% of Gross Domestic Product (GDP), and the total amount of damage (including indirect damage) was 0.39% of GDP, thus demonstrating that foreign disaster could cause great damage to the domestic economy.

Impact of Disaster on Household Expenditures Using a Difference-in-Difference Analysis

“…재난 피해와 가구 경제 간 관계에 대한 기존의 경험적인 연구들은 재난 발생 전후를 기점으로 재난 피해가 가구의 경제적 자산에 미치는 영향에 대해 분석하거나 재난 발생 이후 가구의 소득, 자산 등의 변화를 장기적인 관점에서 분석하거나 가구의 회복력을 중심으로 논의를 진행해왔다 (Mottaleb et al, 2013;Bui et al, 2014;Keerthiratne and Tol, 2018;Moniruzzaman, 2019;Salvucci and Santos, 2020) (Hyun and Kim, 2018;Choi et al, 2019;Kim, Jung, et al, 2021; (2)-(3)과 같다. (Bui et al, 2014;Keerthiratne and Tol, 2018;Salvucci and Santos, 2020)…”