Please use this identifier to cite or link to this item: http://hdl.handle.net/1946/9812
This thesis looks at the paradox of how natural disasters can lead to economic growth and uses at the Touhoku earthquake that struck in March 2011 in Japan as a case to try to determine the effects it will have on economic growth in Japan. We see from earlier research that countries that suffer frequent natural disasters have a higher GDP growth than countries that do not. Using a model I present we then analyze the investments into human and physical capital and see how Japan’s investments into human capital results in long-term growth and how rebuilding physical capital after a disaster hastens adoption of new technology and increases output. In conclusion we find that Japan is likely to experience growth following the earthquake.
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