{
  "title": "How do International Financial Flows to Developing Countries Respond to Natural Disasters?",
  "publication": "IMF Working Papers, July 1, 2010",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/how-do-international-financial-flows-to-developing-countries-respond-to-natural-disasters-24050",
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  "summary": "This paper uses multivariate dynamic panel analysis to examine the response of international financial flows to natural disasters. The models estimated for a large sample of developing countries point to differentiated responses of specific types of financial flows.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Uses multivariate dynamic panel analysis to examine the response of international financial flows to natural disasters for a large sample of developing countries.\n- Models point to differentiated responses across specific types of financial flows.\n- Conclusions have implications for capital/financial account management policies, especially regarding liberalization of private capital flows in countries vulnerable to natural disasters."
    },
    {
      "heading": "Key findings",
      "content": "- Remittance inflows increase significantly in response to shocks to both climatic and geological disasters.\n- Responses of aid flows to natural disaster shocks in general tend not to be statistically significant.\n- International assistance to low income countries increases following geological disaster shocks.\n- Other private capital flows (bank lending and equity) typically do not attenuate the effects of disasters and, in some specifications, even amplify the negative economic effects of these events."
    },
    {
      "heading": "Methodology",
      "content": "- Multivariate dynamic panel analysis applied to a large sample of developing countries.\n- Models estimate responses of different categories of international financial flows to climatic and geological disaster shocks."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Countries should take their vulnerability to natural disasters into account when considering the costs and benefits of the liberalization of private capital flows.\n- Capital/financial account management policies need to consider differentiated effects across remittances, aid, and other private capital flows."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Capital flows, Foreign aid, Natural disasters, Real exchange rates, Remittances\n- Keywords: capital flow, exchange rate, real interest rate, WP\n\nSource: Antonio David. July 1, 2010.\n\n---\n\n Content in this bundle\n\n- How Do International Financial Flows to Developing Countries Respond to Natural Disasters?\n  - How Do International Financial Flows to Developing Countries Respond to Natural Disasters? (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - How Do International Financial Flows to Developing Countries Respond to Natural Disasters? (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/how-do-international-financial-flows-to-developing-countries-respond-to-natural-disasters-24050"
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    "Authors: Antonio David",
    "Published: July 1, 2010",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781455201778.001",
    "Uses multivariate dynamic panel analysis to examine the response of international financial flows to natural disasters for a large sample of developing countries.",
    "Models point to differentiated responses across specific types of financial flows.",
    "Conclusions have implications for capital/financial account management policies, especially regarding liberalization of private capital flows in countries vulnerable to natural disasters.",
    "Remittance inflows increase significantly in response to shocks to both climatic and geological disasters.",
    "Responses of aid flows to natural disaster shocks in general tend not to be statistically significant.",
    "International assistance to low income countries increases following geological disaster shocks.",
    "Other private capital flows (bank lending and equity) typically do not attenuate the effects of disasters and, in some specifications, even amplify the negative economic effects of these events.",
    "Multivariate dynamic panel analysis applied to a large sample of developing countries.",
    "Models estimate responses of different categories of international financial flows to climatic and geological disaster shocks.",
    "Countries should take their vulnerability to natural disasters into account when considering the costs and benefits of the liberalization of private capital flows.",
    "Capital/financial account management policies need to consider differentiated effects across remittances, aid, and other private capital flows.",
    "Subject: Capital flows, Foreign aid, Natural disasters, Real exchange rates, Remittances",
    "Keywords: capital flow, exchange rate, real interest rate, WP",
    "**How Do International Financial Flows to Developing Countries Respond to Natural Disasters?**"
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