Long-run Economic Impacts of Thai Flooding: Geographical Simulation Analysis
Date:
1 July 2013Category:
Disasters, Industry and Manufacturing, Social ProtectionType:
Discussion PapersTags:
industry and manufacturing, Social Protection, disastersPrint Article:
We discuss the long-run economic impact of natural disasters on the countries concerned by examining the case of Thai flooding in 2011.If the damage caused by disasters is really serious, industries will move out from the countries in question, and this outflow leads to a negative impact on the national economies in the long run. By using IDE/ERIA-GSM and utilizing short-run forecast for the basic setting, we estimate the seriousness of the flooding in terms of the long-term economic performance. Simulation results show that negative long-run impacts of the flood will be moderate, because many companies' first reaction to the flood was to seek possible relocation of their production sites within Thailand.
