, manifested through poorly developed financial markets. The theoretical analysis shows that the shock of a disaster occurrence … model are then tested using a panel of data on natural disaster events at the country - year level, covering the period 1979 … - 2007. We find that for countries with low levels of financial sector development, natural disaster events exert a …

constraints, the shock of an extreme event occurrence could have lasting effects on economic growth. The predictions of our … theoretical model are then tested using a panel of data on natural disaster events at the country-year level, covering the period … 1979-2007. In line with recent literature, we find that natural disaster events exert a significant negative impact on …