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Panel data analysis shows natural disasters reduce economic resilience in counties, highlighting the role of social justice.
Macroeconomics has been constantly exposed to natural disasters, particularly amid the rising frequency and intensity of extreme weather events in recent decades. This study uses 22 years of county-level panel data to examine the impact of natural disasters on economic resilience. We find that natural disasters reduce economic resilience. Disaster shocks exert more negative consequences on stability than on adaptability to post-disaster recovery. Moreover, our analysis reveals that land corruption and income inequality amplify the damage caused by natural disasters to economic resilience. It therefore highlights the importance of pre-disaster social justice in coping with long-term economic vulnerability.
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Chen et al. (2026) studied this question.
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