Abstract
The structure of agricultural industries at Cross-Strait differs as climate change is considered. In fact, its influence on their agriculture and other industries vary when the impact produced by natural disasters due to climate change are faced. To estimate direct and indirect losses caused by natural disasters, this study applies Inter-Country Input-Output (ICIO) analysis developed by Miller and Blair (2009) to discuss the development among Cross-Strait industries as they face disaster losses. The data sources used in this article are from Lin (2013), Cross-Strait ICIO table, and the statistics of agriculture in the periods 2005–2017 for Taiwan and Mainland China. The main results from our ICIO analysis are as follows: the value-added losses caused by natural disasters mainly involve agriculture, forestry, fishery, wholesale and retail trade, animal feed, and chemical fertilizer industries. These sectors account for 87.4% in Mainland China and 94.6% in Taiwan of total separately.
Highlights
Due to the impacts of warm and ocean currents, Taiwan’s climate is influenced by continental and maritime weathers
Lin et al (2010) combined the regional and supply side Input-Output analysis developed by Miller and Blair (2009) to evaluate the losses caused by natural disasters in agricultural productions of regional economies
To estimate direct and indirect losses caused by natural disasters, this study applies Inter-Country Input-Output (ICIO) analysis developed by Miller and Blair (2009) to discuss the development among Cross-Strait industries as they face disaster losses
Summary
Due to the impacts of warm and ocean currents, Taiwan’s climate is influenced by continental and maritime weathers. Typhoons bring abundant rainfall spatially distributed in an unequal manner. Such natural disasters trigger floods, landslides, and other losses. Taiwan and Mainland China possess a different industrial structure, both suffer the consequences of natural disasters, including losses in agriculture and related industries. With the aim to evaluate direct and indirect impacts of natural disasters in agriculture between Taiwan and Mainland China, the supply-side Inter-Country Output analysis (Miller and Blair 2009) has been applied. The Cross-Strait Inter-Country Input-Output table (Lin 2013) involving 96 sectors have been used (Appendix 1), which is the statistics of consequences of natural disasters in crops from the Council of Agriculture Statistics in Taiwan and Mainland China from 2005 to 2017. “Empirical analysis” describes our empirical results, and “Economic impact analysis” highlights the main conclusions in this paper
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