Economics of natural disasters and technological innovations in Africa: an empirical evidence.
Environ Sci Pollut Res Int
; 30(5): 12362-12384, 2023 Jan.
Article
in En
| MEDLINE
| ID: mdl-36107292
ABSTRACT
This study provides an empirical analysis of the impact of the disaster on technological innovation by employing the instrumental variable (2SLS) method and instrumental variable fixed-effect method in a panel of 45 African economies from 1990 to 2019. The empirical results confirm disaster's negative and significant impact on innovation. A 1% increase in a disaster will lead to about - 13.750% decrease in scientific journals, - 3.302% decrease in R&D, and - 3.644% decrease in the TFP, respectively. These findings are supported by panel quantile regression. The study identifies four possible channels through which disaster lowers innovation in African economies (i) reducing trade, (ii) total investment opportunities, and (iii) human capital. Various robustness tests support our findings. Finally, the study bolsters historical capital models for the adoption of cutting-edge technology in the building, provides critical policy recommendations on environmental laws, and advocates for disaster-response policies; decentralization of the energy industry away from disaster-affected areas for greater private sector participation; financial incentives for start-ups to facilitate trade and investment; creating a culture of prevention, preparation, and resilience at all levels via knowledge and innovation; and reconstruction as a method of establishing disaster-resistant structures and habitat to offer a safer living environment.
Key words
Full text:
1
Collection:
01-internacional
Database:
MEDLINE
Main subject:
Disasters
/
Natural Disasters
Type of study:
Health_economic_evaluation
/
Prognostic_studies
Limits:
Humans
Country/Region as subject:
Africa
Language:
En
Journal:
Environ Sci Pollut Res Int
Journal subject:
SAUDE AMBIENTAL
/
TOXICOLOGIA
Year:
2023
Document type:
Article