The dilemma of natural disasters: Impact on economy, fiscal position, and foreign direct investment alongside Belt and Road Initiative countries

Khan, Anwar; Chenggang, Yang; Khan, Garee; Muhammad, Faqeer

doi:10.1016/j.scitotenv.2020.140578

Cited by 61 publications

(54 citation statements)

References 60 publications

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“…The coronavirus pandemic that began at the end of 2019 has greatly impacted development continuity in various industries, increased the risk of recession to domestic economies, and severely affected people's lives through widespread shutdowns (Khan et al 2020). Normal R&D investments have been seriously disrupted, which affects knowledge sharing and the dynamic connections among enterprises (Chen, Liu, and Yang 2015) and thus exacerbates financing inefficiencies (Zhan, Li, and Chen 2018;Liu, He, et al 2020).…”

Section: Introductionmentioning

confidence: 99%

R&D investment and financing efficiency in Chinese environmental protection enterprises: perspectives of COVID-19 and supply chain financial regulation

Sheng

et al. 2020

International Journal of Logistics Research and Applications

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Section: Introductionmentioning

confidence: 99%

R&D investment and financing efficiency in Chinese environmental protection enterprises: perspectives of COVID-19 and supply chain financial regulation

Sheng

et al. 2020

International Journal of Logistics Research and Applications

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“…Since FDI is an important driver for the development of countries (OECD, 2002), investigating the factors that intensify FDI empirically is of interest to international economic literature (Blonigen, 2005). Furthermore, in the face of climate change, the debate on natural disasters is considered a current topic (Khan, Chenggang, Khan & Muhammad, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…The results obtained in the literature for the effects of natural disasters on FDI are diverse. While for some authors the number of foreign subsidiaries does not decrease in response to natural disasters (Oh & Oetzel, 2011;Katoka, 2020), or even, natural disasters cause positive long-term effects on FDI (Kato & Okubo, 2018;Doytch , 2019), others conclude that greater severity associated with natural disasters tends to reduce FDI flows (Yang, 2008;Anuchitworawong & Thampanishvong, 2015;Escaleras & Register, 2011;Khan et al 2020;Toner-Rodgers & Friedt, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Katoka (2020) analyzed 44 countries in Sub-Saharan Africa between 1970 to 2018, noting that the total number of disasters that occurred in a period prior to 3 years does not significantly affect FDI inflows. In studying the countries that belong to Belt & Road, Khan et al (2020) concluded that serious natural disasters negatively influence FDI.…”

Section: Introductionmentioning

confidence: 99%

“…According to Toner-Rodgers and Friedt (2020), over the past 15 years, FDI and natural disasters have been central elements for the development of economies. The frequency with which natural disasters are occurring worldwide has worsened, and their consequences for the economy cannot be ignored (Khan et al, 2020;Toner-Rodgers & Friedt, 2020). Likewise, FDI has increased dramatically in recent decades (Kato & Okubo, 2018).…”

Section: Introductionmentioning

confidence: 99%

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O efeito dos desastres naturais no investimento estrangeiro direto dos países

Ramos

Krug

Ferretti

et al. 2021

RIAE

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Objective: This study aims to analyze the influence of natural disasters on countries' FDI.Method: We used data from 137 countries, considering the period from 2011 to 2017. The secondary data used to measure Foreign Direct Investment are from the UNCTAD - United Nations Conference on Trade and Development following the study by Alfaro et al. (2004). For data on natural disasters, the EM-DAT database - The International Disaster Database provided by CRED - Center for Research on the Epidemiology of Disasters - was used, based on the studies by Toya Skidmore (2007) and Escaleras Register (2011). The analysis was performed through Linear Regression of panel data.Originality/Relevance: This study points to a direction of research for those interested in expanding the flows of Foreign Direct Investment in their countries, being significant in the field of business, government, public policy makers and the third sector.Results: The results show that when an economy suffers from natural disasters that cause deaths and, consequently, a reduction in human capital, foreign investors can negatively portray this fact. On the other hand, the number of occurrences and the loss in millions of dollars when analyzed individually do not discourage FDI and the presence of multinationals in the affected country. The variables: total of injured, total of affected, and total of homeless have no relation with FDI in the analyzed sample. It is indicated that, in the face of a natural disaster, countries create opportunities for the replacement and reconstruction of infrastructure and human capital.Theoretical contribution: We seek to contribute theoretically to the recent increase of studies that verify the relationship between natural disasters and FDI in the light of the institution-based view. We direct greater understanding to the premise that natural disasters affect a country's economy as they cause FDI reduction, and we provide the foundation for future studies. While previous studies are concerned with FDI determinants, being tax incentives and property rights, this study focuses specifically on the different variables that aggregate natural disasters. In addition, the study aims to expand the perception of decision makers, belonging to the government, private entities and the third sector, so that they can reduce and prevent the occurrence of natural disasters, thus attracting FDI flows in their countries.

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From traditional innovation to green innovation: How an occurrence of natural disasters influences sustainable development?

Ma,

Feng,

Chang

2023

Sustainable Development

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With the high incidence of extreme events, it is important to examine how the occurrence of natural disasters influences long‐term sustainable development. We give evidence from the changing process of innovation. Using data from OECD countries from 1985 to 2018, we conclude that environmental threats from the occurrence of natural disasters drive countries to pay more attention to sustainable development and promote the change of innovation type from traditional to green innovation. Moreover, for different types of natural disasters, volcanic activities, landslides, and floods show a positive influence, while epidemics dampen it. Based on the sub‐sample analysis, this impact is more pronounced in countries with high levels of economic development, oil exports and right‐wing parties in power. Furthermore, renewable energy consumption acts as a positive moderator, while the moderating effects of government efficiency, corruption and globalization are inhibiting. Our paper provides new insights into natural disaster economics and sustainable development.

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The dilemma of natural disasters: Impact on economy, fiscal position, and foreign direct investment alongside Belt and Road Initiative countries

Cited by 61 publications

References 60 publications

R&D investment and financing efficiency in Chinese environmental protection enterprises: perspectives of COVID-19 and supply chain financial regulation

R&D investment and financing efficiency in Chinese environmental protection enterprises: perspectives of COVID-19 and supply chain financial regulation

O efeito dos desastres naturais no investimento estrangeiro direto dos países

From traditional innovation to green innovation: How an occurrence of natural disasters influences sustainable development?

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