Long term consequences of short-run income shocks: Evidence from cyclones in Madagascar

There is an important and complex relationship between natural disasters and economic growth (impacts on growth, channels, etc). Empirical studies are still limited (Antilla-Hughes and Hsiang, 2012). Madagascar is the second most exposed country to multi-disaster risks in Africa (cyclones, droughts, floods, locust invasions). Five out of twenty million people live in zones at risk of natural disasters (GFDRR, 2013). As of 2013, Madagascar has the fourth lowest GDPpc ($265 per capita). I focus on cyclones, a relatively frequent weather shock that hits the country( 3 to 5 cyclones a year.)