Economic Resilience and Vulnerability Assessment of Local Economies in the Visayas and Mindanao Regions to Hydrometeorological Disasters

Abstract

The Philippines, located on the "typhoon belt," is constantly battered by hydrometeorological disasters such as tropical storms, storm surges, and flooding. Despite being susceptible to hazardous conditions, the country lacks data pertinent to local economic resilience and vulnerability indicators, explaining the high social and economic losses whenever disastrous events occur. This study assessed the economic resilience and vulnerability levels of the two main islands of the Philippines, the Visayas and Mindanao, at the regional level for the period 2000–2022 and examined their connection to the severity of the impact of hydrometeorological disasters. Composite indices were formed, namely the economic resilience index (ERI) and vulnerability index (VI). The two indices were examined using three analytical methods: matrix, trend, and mapping. The researchers conducted an econometric analysis using the pooled data regression, with the vulnerability and economic resilience variables as the explanatory variables and the impact of disasters as the dependent variable. The panel data showed that the economic resilience factors, education cohort survival, number of beds in health institutions, and ownership of living places negatively affect the impact of disasters. In contrast, the local government revenue positively impacts the disasters. The vulnerability variables frequency of disasters, rainfall volume, wind intensity, population density, and agricultural land use contribute to the impact of disasters. By strengthening their economic resilience, the various regions can lessen the effects of disasters based on the matrix and trend analysis. Therefore, the government should enhance the economic resilience of areas vulnerable to hydrometeorological disasters.