Publication: The Fragility and Resilience of Nations

Thumbnail Image
Files in English
English PDF (813.97 KB)
8 downloads

English Text (93.19 KB)
2 downloads
Date
2023-03
ISSN
Published
2023-03
Author(s)
Karayalcin, Cem
Onder, Harun
Abstract
Climate change will impose large and differentiated tolls across countries. This paper suggests that economic fragility and resilience against climate change-driven natural shocks are shaped by: (i) the elasticity of input substitution in resource-intensive sectors, (ii) the trade regime, and (iii) the property rights regime in nature-based assets. Using a structural transformation model, the paper shows, inter alia, that openness increases resilience against natural shocks, regardless of the property right regime. Additionally, openness reduces fragility when a social planner internalizes the social cost of natural resource degradation. However, it increases fragility in a decentralized economy with incomplete property rights in nature-based assets.
Citation
Karayalcin, Cem; Onder, Harun. 2023. The Fragility and Resilience of Nations. Policy Research Working Papers; 10362. © World Bank, Washington, DC. http://hdl.handle.net/10986/39542 License: CC BY-NC 3.0 IGO.
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue
Associated URLs
Associated content
Citations