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Journal of Applied Sciences
  Year: 2009 | Volume: 9 | Issue: 2 | Page No.: 341-347
DOI: 10.3923/jas.2009.341.347
Study of the Effects of Natural Disasters on Gross Domestic Product in Iran
H. Sadeghi, S. Emamgholi Sefiddasht and M. Zarra Nezhad

Abstract:
The aim of this study is to investigate the effects of occurred natural disasters in Iran on Iran`s Gross Domestic Product (GDP). An Auto Regressive Distributed Lags (ARDL) model has been applied during 1978-2004 in order to investigate the effects of disasters on Iran`s GDP in short term and long term. The estimation results of the model suggested the existence of long-term equilibrium between non-oil GDP and explanatory variables. The findings of the research showed that both the short-term and long-term estimated models indicate the negative effects of these disasters on the Iranian economy, particularly on per capita investment and per capita GDP. Negative impact of natural disasters on per capita GDP was, in the first stage, due to the decline in physical capital. During the renovation period, the Iranian government allocated the budget to remedy the damages incurred to the infrastructures, residential and industrial units and product capacity in order to raise the per capita GDP. The results also showed the relatively slow speed of adjustment to the disequilibria, with only 17% of any deviation being corrected each year.
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How to cite this article:

H. Sadeghi, S. Emamgholi Sefiddasht and M. Zarra Nezhad, 2009. Study of the Effects of Natural Disasters on Gross Domestic Product in Iran. Journal of Applied Sciences, 9: 341-347.

DOI: 10.3923/jas.2009.341.347

URL: https://scialert.net/abstract/?doi=jas.2009.341.347

 
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