Allocation of drought relief resources and its biased impact on agricultural production in Mexico

Abstract

Droughts, understood as natural and anthropogenic hazards, are studied as disasters, given the disruption they provoke to "normality" and livelihood. From damages to crops and livestock to unemployment and migration, droughts are framed as shocking events that carry negative effects on human life. Still, the consequences of their response policies are often underdiscussed. This article presents how post-drought investment increases agricultural productivity, by using precipitation and economic production as main factors for its allocation. Using data from 2003 to 2018 at the municipal level, panel regressions and matching methods are performed. Results indicate that those municipalities with disaster declarations and relief investment present a higher level of yield in the future compared to municipalities with similar meteorological conditions but without disaster declaration. The article shows how disaster definitions matter as policy processes, given the consequences that programs and policies have in the future of communities and in their relationship with hazards.