Natural disaster has vulnerable effects on manufacturing firm’s growth as well as on economic development, due to climate change in these geographical areas. The limited empirical evidence in this knowledge base points out inappropriate strategic policy decisions for manufacturing firms’ growth in developing countries as root cause. Taking manufacturing firms in Bangladesh as an example, this paper upholds the impact of natural disasters on firm growth in both short and long run. The estimates use the World Bank Enterprise Survey (WBES) Data as a sample to analyze firm growth between 2007 and 2014 in Bangladesh matched with Emergency Event Database (EM-DAT) disaster database for 2472 valid samples of manufacturing firms using the OLS regression model. The study finds the positive association of natural disasters with long term growth measured via assets and labor growth. Whereas the study found that the natural disasters negatively short run firm growth measured via sales growth. We may also conclude that natural disasters significantly impact on firm growth and policymakers can initiate the strategies for manufacturing firms to mitigate the risk of climate change.
Rahman, A.B.M. Munibur; Chowdhury, Mohammad Abir Shahid; Zhan, Zhan; and Paul, Arnab, "Retrospective analysis of natural disaster impact on firm growth: A case in manufacturing firms in Bangladesh" (2023). ICEB 2023 Proceedings (Chiayi, Taiwan). 55.