Death tolls from natural disasters: Influence of interactions between fiscal decentralization, institution, and economic development

Previous research shows that the effect of decentralization on damage caused by natural disasters will differ according a country’s level of economic development. To investigate this matter further, this paper uses cross-country data from 1990 to 2001 to examine how decentralization, institution, and economic development influence the number of deaths caused by natural disasters. The major findings are that decentralization reduces deaths and its effect is strengthened in countries with lower levels of public sector corruption and better functioning legal systems. Furthermore, the interaction between decentralization and high quality institutions has a greater contribution to the reduction of deaths in more developed countries.