Article Sidebar

Volume 21 Issue 2, December 2023
Submitted
November 14, 2023
Published
January 31, 2024
Download
PDF
Statistic
Read Counter : 211 Download : 134

Downloads

Download data is not yet available.

Main Article Content

Abstract

Historically, Indonesia is an area prone to natural disasters. Potential losses caused by natural disasters can be death, injury, illness, threatened life, sense of security, displacement, damage or loss of objects, and disruption of daily activities. The impact of natural disasters will indirectly affect output, income, demand for labor, and economic growth. This study aims to calculate the impact of natural disasters in Central Sulawesi Province (which occurred in 2018) on the regional and national economies. The method used is the Interregional Input-Output model measuring 17 sectors and 34 provinces. The findings show that Central Sulawesi Province's Gross Regional Domestic Product is IDR.114.01 trillion, decreased-12.93 percent to IDR.99.27 trillion due to natural disasters. Labor demand decreased by -9.68 percent, and income decreased by -9.58 percent. Natural disasters in Central Sulawesi Province also impacted the decline in National GDP by -0.16 percent. Disaster mitigation programs are essential for anticipating direct and indirect losses caused by natural disasters. Consequently, the government must consider the impact of inflation and economic growth when implementing disaster mitigation programs on the public agenda.

Keywords

natural disasters economic growth income unemployment

Article Details

License

Copyright (c) 2024 Jurnal Ekonomi Pembangunan

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the terms:

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

Creative Commons License

Jurnal Ekonomi Pembangunan is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License..

Author Biographies

Rasidin Karo Karo Sitepu, Center for Regional and Budgetary Studies of the Secretariat General of Regional Representative Council (DPD), the Republic of Indonesia

Legislative Analyst at Center for Regional and Budgetary Studies, The House of Regional Representative of the Republic of Indonesia

Rama Mahesa, Center for Regional and Budgetary Studies of the Secretariat General of Regional Representative Council (DPD), the Republic of Indonesia

Legislative Analyst at Center for Regional and Budgetary Studies, The House of Regional Representative of the Republic of Indonesia

Arief Maulana, Center for Regional and Budgetary Studies of the Secretariat General of Regional Representative Council (DPD), the Republic of Indonesia

Legislative Analyst at Center for Regional and Budgetary Studies, The House of Regional Representative of the Republic of Indonesia

Mhd. Asaad, Center for Regional and Budgetary Studies of the Secretariat General of Regional Representative Council (DPD), the Republic of Indonesia

Legislative Analyst at Center for Regional and Budgetary Studies, The House of Regional Representative of the Republic of Indonesia

How to Cite
Sitepu, R. K. K., Mahesa, R., Maulana, A., & Asaad, M. (2024). How Central Sulawesi Province’s Natural Disasters Affect Economic Growth?. Jurnal Ekonomi Pembangunan, 21(2), 200–210. https://doi.org/10.29259/jep.v21i2.23005
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Aurangzeb, Z., & Stengos, T. (2012). Economic Policies and the Impact of Natural Disasters on Economic Growth: A Threshold Regression Approach. Economics Bulletin, 32(1), 229–241. https://econpapers.repec.org/article/eblecbull/eb-11-00440.htm
  2. Avelino, A. F. T., & Dall’erba, S. (2019). Comparing the Economic Impact of Natural Disasters Generated by Different Input–Output Models: An Application to the 2007 Chehalis River Flood (WA). Risk Analysis, 39(1), 85–104. https://doi.org/10.1111/risa.13006
  3. Cardona, O. D., Van Aalst, M. K., Birkmann, J., Fordham, M., Mc Gregor, G., Rosa, P., Pulwarty, R. S., Schipper, E. L. F., Sinh, B. T., Décamps, H., Keim, M., Davis, I., Ebi, K. L., Lavell, A., Mechler, R., Murray, V., Pelling, M., Pohl, J., Smith, A. O., & Thomalla, F. (2012). Determinants of risk: Exposure and vulnerability. In Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation: Special Report of the Intergovernmental Panel on Climate Change (Vol. 9781107025066, pp. 65-108). Cambridge University Press. https://doi.org/10.1017/CBO9781139177245.005
  4. Cochrane, J. H. (1997). Where is the market going? Uncertain facts and novel theories. Economic Perspectives, 21(Nov), 3-37.
  5. Commons.wikimedia.org. (2018). Tectonic plates and ring of fire. 2018. https://commons.wikimedia.org/wiki/File:Tectonic_plates_and_ring_of_fire.png
  6. De Oliveira, V. H. (2019). Natural Disasters and Economic Growth in Northeast Brazil: Evidence from Municipal Economies of the Ceará State. Environment and Development Economics, 24(3), 271–293. https://doi.org/10.1017/S1355770X18000517
  7. Fomby, T., Ikeda, Y., & Loayza, N. V. (2013). The Growth Aftermath of Natural Disasters. Journal of Applied Econometrics, 28(3), 412–434. https://doi.org/doi.org/10.1002/jae.1273
  8. Gordon, P., & Richardson, H. W. (2001). The Sprawl Debate: Let Markets Plan. Publius, 31(3), 131–148. https://doi.org/10.1093/oxfordjournals.pubjof.a004901
  9. Hidayah, F., & Sunarjo, D. A. (2021). Hubungan Antar Sektor dan Daerah dalam Perekonomian Provinsi Sumatera Barat Tahun 2016 (An Inter-Regional Input-Output Analysis). Jurnal Ekonomi Dan Statistik Indonesia, 1(3), 244–260. https://doi.org/10.11594/jesi.01.03.10
  10. Hutchings, S. J., & Mooney, W. D. (2021). The Seismicity of Indonesia and Tectonic Implications. Geochemistry, Geophysics, Geosystems, 22(9), e2021GC009812. https://doi.org/10.1029/2021GC009812
  11. Ishiwata, H., & Yokomatsu, M. (2018). Dynamic Stochastic Macroeconomic Model of Disaster Risk Reduction Investment in Developing Countries. Risk Analysis, 38(11), 2424–2440. https://doi.org/10.1111/risa.13144
  12. Klomp, J., & Valckx, K. (2014). Natural Disasters and Economic Growth: A Meta-analysis. Global Environmental Change, 26(1), 183–195. https://doi.org/10.1016/j.gloenvcha.2014.02.006
  13. Mbanda, V., & Bonga-Bonga, L. (2018). Impacts of Public Infrastructure Investment in South Africa: A SAM and CGE-Based Analysis of the Public Economic Sector (No. 90613). University Library of Munich, Germany. http://search.proquest.com/docview/2189157116/
  14. Miller, R. E., & Blair, P. D. (1985). Input–Output Analysis: Fundations and Extensions. Cambridge: Cambridge University Press. https://pdfs.semanticscholar.org/3e64/815208e0435771f679f2930f1952eef53138.pdf
  15. Okuyama, Y. (2007). Economic Modeling for Disaster Impact Analysis: Past, Present, and Future. Economic Systems Research, 19(2), 115–124. https://doi.org/10.1080/09535310701328435
  16. Okuyama, Y., & Sahin, S. (2009). Impact Estimation of Disasters: A Global Aggregate for 1960 to 2007. In World Bank Policy Research Working Paper (Issue June), 4963.
  17. Okuyama, Y., & Santos, J. R. (2014). Disaster Impact and Input-Output Analysis. Economic Systems Research, 26(1), 1–12. https://doi.org/10.1080/09535314.2013.871505
  18. Rahmawan, I. M., & Angraini, W. (2021). Keterkaitan Antar Sektor dan Antar Wilayah dalam Perekonomian Provinsi Lampung: Analisis Data Tabel Inter Regional Input Output (IRIO) Tahun 2016. Jurnal Ekonomi Dan Statistik Indonesia, 1(3), 227–243. https://doi.org/10.11594/jesi.01.03.09
  19. Rose, A., & Benavides, J. (1998). Regional Economic Impacts. In Engineering and Socioeconomic Impacts of Earthquakes (pp. 95– 123). Buffalo, NY: Multidisciplinary Center for Earthquake Engineering Research.
  20. Rose, A., & Liao, S. Y. (2005). Modeling Regional Economic Resilience to Disasters: A Computable General Equilibrium Analysis of Water Service Disruptions. Journal of Regional Science, 45(1), 75–112. https://doi.org/10.1111/j.0022-4146.2005.00365.x
  21. Saban, A. B., Sahara, & Falatehan, A. F. (2023). Economic Transformation: How Does the Agricultural Sector Performance in Indonesia’s Regional Economic Structure?. Jurnal Ekonomi Pembangunan, 21(2), 175–190. https://doi.org/10.29259/jep.v21i2.22744
  22. Sahin, I., & Yavuz, O. (2015). Econometric Analysis of Natural Disasters Macro-Economic Impacts: An Analysis on Selected Four OECD Countries. Pressacademia, 4(3), 430–430. https://doi.org/10.17261/pressacademia.2015313064
  23. Santos, J. R., May, L., & Haimar, A. El. (2013). Risk-Based Input-Output Analysis of Influenza Epidemic Consequences on Interdependent Workforce Sectors. Risk Analysis, 33(9), 1620–1635. https://doi.org/10.1111/risa.12002
  24. Taufiqqurrachman, F. (2022). Multipler Effect in East Java (Input-Output Analysis Approach). Jejak (Journal of Economics and Policy), 15(2), 255–272. https://doi.org/10.15294/jejak.v15i2.35821
  25. Utomo, D. D., & Marta, F. Y. D. (2022). Dampak Bencana Alam Terhadap Perekonomian Masyarakat di Kabupaten Tanah Datar. Jurnal Terapan Pemerintahan Minangkabau, 2(1), 92–97. https://doi.org/10.33701/jtpm.v2i1.2395
  26. Yokomatsu, M., Wada, H., Ishiwata, H., Kono, T., & Wakigawa, K. (2014). An Economic Growth Model for Disaster Risk Reduction in Developing Countries. Conference Proceedings - IEEE International Conference on Systems, Man and Cybernetics, 2014 (January), 1565–1572. https://doi.org/10.1109/smc.2014.6974139

Similar Articles

1 2 > >> 

You may also start an advanced similarity search for this article.