: Secondary effects following the event, including business interruptions, lost wages, supply chain disruptions, and increased financial market volatility. Short-Term Shocks and "False" Growth
: This theory suggests that replacing destroyed capital with newer, more technically advanced infrastructure could theoretically lead to higher long-term productivity, though empirical consensus on this is lacking. Disparities: Developed vs. Developing Economies the impact of natural disasters on economic growth
The ability to absorb shocks varies drastically based on a nation's development level: : Secondary effects following the event, including business
: Better political institutions and lower corruption correlate with faster recoveries and reduced negative impacts. : Secondary effects following the event