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Impact of drought on economy: a district level analysis of Madhya Pradesh, India
Journal of Environmental Planning and Management ( IF 4.4 ) Pub Date : 2021-02-03
Ashish Sharma, Subir Sen

This study examines the consequences of droughts on the aggregate economic growth and the growth of agriculture, industry and service sectors respectively. The benefits of financial relief post-drought and the efficacy of irrigation infrastructure is also statistically tested considering a sample of 45 districts in one of the largest states in India, Madhya Pradesh. A two-step GMM procedure is applied to balanced panel data for the period 2005 to 2012. Districts in the state face recurrent droughts, limited irrigation, and rainfall variability increases vulnerability to drought risks. Results show that drought adversely impacts on the growth rate of the agricultural sector and the aggregate economy. Post-drought financial relief has a positive and significant impact on the growth rate of the industrial sector and economic growth at the district level. The study contributes to the growing literature on disaster impact on growth by focusing on district-level assessment.



中文翻译:

干旱对经济的影响:印度中央邦的地区分析

这项研究分别考察了干旱对总体经济增长以及农业,工业和服务业增长的影响。考虑到印度最大的州之一中央邦的45个地区的样本,还对干旱后的财政救济的好处和灌溉基础设施的有效性进行了统计检验。GMM程序分为两步,用于2005年至2012年期间的平衡面板数据。该州的地区面临经常性干旱,灌溉受限和降雨多变性增加了对干旱风险的脆弱性。结果表明,干旱对农业部门和整个经济的增长率产生不利影响。干旱后的金融救济对工业部门的增长率和地区一级的经济增长具有积极而重大的影响。这项研究通过侧重于地区级评估,为有关灾害对经济增长的影响的文献不断增长做出了贡献。

更新日期:2021-02-03
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