Abstract:
This research study explores the impact of disasters on economic growth in selected
Southern Africa Development Community countries. Annual data from 2005 to 2019 and
panel data econometric estimation techniques are used in this study. The estimation
approaches used control for both pooled and individual effects, heteroscedasticity, serial
correlation, moderate levels of endogeneity and cross-sectional dependence (CSD). We
found that although the impact of disasters on economic growth may be negative
contemporaneously, reconstruction and recovery activities if well-resourced could
facilitate building back better, which could ultimately lead to positive outcomes on
economic growth a year after the disaster. We further tested the hypothesis in existing
literature and confirm that quality institutions, favourable financial conditions and
adequate access to international markets enhance a country’s coping and adaptive
capabilities to disasters, thereby reducing the country’s level of risk to disasters.
