Foreign Aid in the Aftermath of Large Natural Disasters

28 Pages Posted: 26 Jan 2013

See all articles by Ilan Noy

Ilan Noy

Victoria University of Wellington

Oscar Becerra

affiliation not provided to SSRN

Eduardo A. Cavallo

Inter-American Development Bank (IDB) - Research Department

Multiple version iconThere are 2 versions of this paper

Date Written: August 2012

Abstract

This paper examines Official Development Assistance (ODA) in the aftermath of large natural disasters between 1970 and 2008. Using an event-study approach, the paper finds that while the median increase in ODA is 18 percent compared to pre-disaster flows, the typical surge is small in relation to the size of the affected economies. Moreover, aid surges typically cover only 3 percent of the total estimated economic damages caused by the disasters. The main determinants of post-disaster aid surges are found to be the intensity of the event itself and the recipient country's characteristics such as level of development, country size and stock of foreign reserves. The paper does not find evidence that political considerations or strategic behavior on the part of donors determine the size of post-disaster aid surges.

JEL Classification: F35, Q54

Suggested Citation

Noy, Ilan and Becerra, Oscar and Cavallo, Eduardo A., Foreign Aid in the Aftermath of Large Natural Disasters (August 2012). IDB Working Paper No. IDB-WP-333, Available at SSRN: https://ssrn.com/abstract=2207237 or http://dx.doi.org/10.2139/ssrn.2207237

Ilan Noy (Contact Author)

Victoria University of Wellington ( email )

P.O. Box 600
Wellington, 6140
New Zealand

Oscar Becerra

affiliation not provided to SSRN ( email )

Eduardo A. Cavallo

Inter-American Development Bank (IDB) - Research Department ( email )

1300 New York Ave., NW
Washington, DC 20577
United States

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