Comments on Natural Disasters and International Financial Accessibility in Developing Countries

Abstract

March 01 2019 Comments on Natural Disasters and International Financial Accessibility in Developing Countries Author and Article Information Online Issn: 1536-0083 Print Issn: 1535-3516 © 2019 by the Asian Economic Panel and the Massachusetts Institute of Technology2019Asian Economic Panel and the Massachusetts Institute of Technology Asian Economic Papers (2019) 18 (1): 264–267. https://doi.org/10.1162/asep_a_00684 Cite Icon Cite Permissions Share Icon Share Facebook Twitter LinkedIn MailTo Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Search Site Citation Comments on Natural Disasters and International Financial Accessibility in Developing Countries. Asian Economic Papers 2019; 18 (1): 264–267. doi: https://doi.org/10.1162/asep_a_00684 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAll JournalsAsian Economic Papers Search Advanced Search Bhanupong Nidhiprabha, Thammasat University: The central theme of the paper is that disasters cause threefold harm to developing countries: direct costs to human and physical assets, deteriorating macroeconomic stability, and hampering access to international capital markets. The authors analyze the impact of natural disasters on financial accessibility and examine whether disaster relief aid can improve the sovereign rating. Financial accessibility is reduced when the disaster-hit countries must face higher borrowing costs due to sovereign risk downgrading. The impacts of natural disasters on sovereign credit ratings are analyzed by using annual 87 country panel data from 1995 to 2014. Samples are divided into high- and low-income groups. The focus is on the latter. The authors employ the changes in Standard and Poor's (S&P) sovereign ratings (from a scale of 0 to 20) as an endogenous variable in the fixed-effect model. Exogenous variables in the model include GDP growth, inflation rate, changes... You do not currently have access to this content.