Could earthquakes, including those in Turkey, lead to a new course of revivification and revitalization?
Scientists and economists alike seem to agree on the short-term negative economic impacts of natural disasters such as earthquakes. However, the longer-term reflections are not clear since the long-term growth and GDP impacts could even be positive as disaster-hit regions usually grow faster in order to catch up with other regions. National and international support further facilitate this process.
Extensive literature also demonstrates that new investments, government expenditures, and other support packages may lead to significant long-term positive effects on the GDP. For example, literature shows that while the short-term impacts of big natural disasters could be negative (-0.9 percent on average), the longer-term effects turn positive (0.6 percent on average).
During the next few months, we predict a negative effect on Turkey due to the …
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