An analysis on the economic resilience and vulnerability of local economies in the Philippines to hydrometeorological disasters

Abstract

The Philippines is one of the most hazard-prone countries worldwide, mainly to hydrometeorological disasters like storms, heavy rainfall, and flooding. The impact of these disasters tends to be localized predominantly among the different regions in the country. This study determined the level of economic resilience and vulnerability of the different regions in the Philippines from 2000 to 2018. Two composite indices were created, the economic resilience index, and the vulnerability index. The two indices were analyzed using trend analysis, matrix analysis, and mapping. A panel data analysis was conducted using the disaggregated variables as the explanatory variables and the impact of disasters as the dependent variable. The first result showed that economic resilience and vulnerability of the regions vary throughout the identified periods. The National Capital Region, Region VII, and Region I showed high economic resilience level but varying vulnerability level. Most regions also showed a decreasing trend in their economic resilience but an increasing trend in their vulnerability. The panel data revealed that the economic resilience factors, average family savings, and “access to safe drinking water” positively affect the impact of disasters. The vulnerability variables frequency of hydrometeorological disasters, rainfall volume, and loss of forest cover contribute to the impact of disasters. The matrix and trend analysis showed that the different regions can minimize the impact of disaster by increasing their economic resilience. The government should therefore improve the socioeconomic conditions of regions vulnerable to hydrometeorological disasters.