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Essay / What natural disasters occur in Indonesia?
Indonesia is one of the developing countries vulnerable to disasters. West Sumatera Province is one of the disaster-prone regions in Indonesia. According to recorded history, there have been three times large earthquakes and tsunamis hit this region. The last time this happened in 2009 and affected almost all regions of this province with losses of around 4.8 billion rupees, or 64 trillion US dollars. This condition leads to disruption of economic activities and losses due to business distraction. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay Natural disasters that automatically strike these areas lead to deterioration of the economy (Okuyama, 2013) and development within a span of several years after the earthquake. . This occurs due to the destruction of infrastructure and renders the majority of victims jobless and displaced (Okuyama, 2003). Many studies have been carried out on the economic impact of natural disasters. There are two types of studies on this subject: the long-term economic impact of natural disasters and the short-term economic impact. Okuyama (2015) argues that the long-term economic effect of a disaster is analyzed using an econometric model with the aim of analyzing the damaging effect of the stock that influences the long-term growth trajectory. While the disaster sorting effect of the economy is used using the IO model, social accounting matrix or computable general equilibrium (CGE) model to analyze structural changes in the economy. economics that differentiate between the negative impact of damage and the positive impact of recovery and reconstruction activities. Okuyama (2015), in the long run, the effect of a disaster occurred in the main area where the event occurred. The damage caused by the disaster made it possible to restore the area and renew the system and technology. Coffman (2011) states that in the long term, the economic situation of the disaster region has never fully recovered after a disaster. This is due to the difficulties in the reconstruction area. On the other hand, in the short term, Guimares (1992) and Strobl (2011) argue that economic growth tends to decline during a disaster, but recovery after the disaster influences the situation. economic growth. Lazzaroni (2014) also stated that at the time of the disaster, there was a significant effect on the direct cost, namely socio-economic factors, which increased or decreased the adverse effects of the disaster. In terms of indirect costs, the impact of a natural disaster on GDP was an insignificant effect. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get Custom Essay Based on this argument, this study is carried out to determine whether the disaster in West Sumatera Province leads to changes in the economic structure after the recovery activity, which will identify the impact of damage and recovery activity on the economic structure.