The post-disaster economic resilience; a study on the economic impact of flooding, and influence of cash and non-cash assistance across local and refugee population of Cox Bazar, Bangladesh

Abstract

Abstract Natural disasters (i.e., flooding) exert a substantial impact on the economic activities of the poverty-stricken coastal population of Cox Bazar, Bangladesh. The economic impact of flooding is measured using individual-level data from the Cox Bazar Panel Survey (CBPS) data. Satellite data, such as the Landsat 8, the Shuttle Radar Topography Mission (SRTM) elevation data, and other resources have been used to identify the flooded areas and other geographical changes across the region. The DID results indicate flood-affected individuals had lower employment, longer work hours, and were more likely to seek jobs. However, those with jobs were found to have greater earnings. The 2SLS results indicate that cash and non-cash assistance mediate the relationship between flooding and economic outcomes. Individuals who received cash assistance were better at integrating as they had better employment rates and higher earnings. In contrast, recipients of non-cash assistance had lower employment rates and had no significant effect on earnings. In addition, the propensity score results imply that individuals with similar demographic characteristics, who have received cash assistance compared to those who did not, have lower food shortages and better health. Lastly, the triple difference estimator shows that individuals living in areas with better access to healthcare facilities had greater employment and earnings compared to those who didn’t.