Natural disasters, information/communication technologies, foreign direct investment and economic growth in developed countries

Abstract

This paper investigates the causal relationship between natural disasters (DMS), information and communication technologies (ICT), foreign direct investment (FDI) and economic growth (GDP per capita) for 10 developed countries over the period 1990 to 2016. Panel DOLS and FMOLS results show that there is a positive relationship running from ICT to natural disasters and to foreign direct investment. In addition, ICT have a positive effect on GDP per capita. VECM Granger causality analysis results reveal a unidirectional causality in the short and long term from ICT to natural disaster and to FDI at the 5% and 10% levels. Therefore, one may note that there is a unidirectional relationship running from natural disaster to GDP and a bidirectional relationship between FDI and GDP.