The Fragility and Resilience of Nations

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)...

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Bibliographic Details
Main Author: Karayalcin, Cem
Other Authors: Onder, Harun
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2023
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Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
Description
Summary: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
Physical Description:29 pages