Natural Disaster and Economic Growth Essay Example | Topics and Well Written Essays - 1250 words

Natural Disaster and Economic Growth - Essay ExampleThis essay provides an comprehensive abstract of the scotchal impress of earthquakes on the performance of the countrys economy, both in the long and in the short run. Natural misadventures are detrimental to the economic growth of the countries that face the disaster. The extent and severity of the effect of natural disasters vary across countries, but, the basic impact is not heterogeneous.The great Hanshin-Awaji earthquake hit lacquer and it had brought tremendous damage to the country in terms of economic growth of the economy and the affable structure. The city of Kobe was the worst sufferer in this disaster. Japan was already a developed nation when the disaster had stricken the country. Research by scholars acknowledges that the disaster had caused devastating damage to the economic landscape of southern-central Japan But, at the alike time the go forths of investigation show that the earthquake made people realize t he fact that groovy formation is an important element of economic growth in the country. In the long run, level of well being of the survivors of the disaster depends on the rate at which capital is accumulated in the economy. Research results show that the impact of the disaster fades with time and the rate of development of the economy plays a major role in the standard of living of its peopleAlthough natural disasters are occurring with change magnitude oftenness and are creating potentially devastating impact on the economies that face it, the economic cause of the disaster has not yet been accurately deciphered.... Victims show the course to adapt with the new circumstances with the passage of time. A subsequent research shows the result of investigation into the extent to which the earthquake enhanced the investment in social capital through participation in community activity (Yamamura, 2013, p. 1). After facing the huge loss to life and property as a result of the earthq uake, the people of Japan expressed greater consciousness regarding the importance of social capital. Comparing the data collected between the years 1991 and 1996, it has been found that people were more than inclined to make investment in social capital in 1996 than they were in 1991 (Skidmore and Toya, 2002). This significantly increased the rate of investment in social capital by the residents of Kobe. However, rate of investment by the people living in the cities near Kobe did not show any noteworthy change. From this phenomenon the author has inferred that the impact of the disaster decreases with distance the effect of the disaster is lesser in the minds of the people that stay far away from the origin of disaster (Yamamura, 2010). Although natural disasters are occurring with increasing frequency and are creating potentially devastating impact on the economies that face it, the economic cause of the disaster has not yet been accurately deciphered. There have been several(pre nominal) studies on the medium and long term impact of the disasters on the prospects of development of the countries. According to the works by Cavallo, Powell and Becerra (2010) long term effects of natural disasters from the economic point of view are not understood well. In general, literature existing in this sphere of research shows lack of theory and empirical evaluation of the mechanisms that