• Li Wan Zhang Xian Jiao Tong university
  • Chun-Ping Chang Shih Chien University
Keywords: Natural Disaster, Financial Risks, Fixed Effects Model, Panel Unit Root Test


Using an unbalanced panel data consisting of deaths from natural disasters and fivefactors of financial risks in 136 countries, this paper analyzes the effect of naturaldisasters on different financial risks. The conclusions are as follows: (1) naturaldisasters lead to financial crisis by reducing GDP and trade and increasing domesticand foreign debt; (2) the effects of natural disasters on financial risks are dynamic andlong term, with the effect weakening with time; and (3) the negative effects of naturaldisasters on financial risks in high-income and OECD countries are smaller than thoseof low-income and non-OECD countries.


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How to Cite
Zhang, L., & Chang, C.-P. (2020). DO NATURAL DISASTERS INCREASE FINANCIAL RISKS? AN EMPIRICAL ANALYSIS. Buletin Ekonomi Moneter Dan Perbankan, 23, 61 - 86.