Regional Impact of Cyclone Sidr in Bangladesh: A Multi-Sector Analysis

Abstract

This research investigates the impact of cyclone Sidr on six regional economic systems of Bangladesh. The study uses secondary data on direct damages and corresponding changes in consumer spending and public/private investment expenditure. It employs input–output modeling and simulates the changes in national and regional output, income, and employment due to cyclone Sidr. Our findings indicate that coastal regions of Bangladesh—Barisal, Chittagong, and Khulna—are more vulnerable to cyclone disaster than are other parts of the country. The cyclone-induced loss of output is highest for Chittagong Division and income and employment losses are greatest in Barisal Division. The most affected sectors are housing services, agriculture, construction, and industrial activities. But sectoral losses vary widely across the regions. This research also finds that the present state of consumer spending and investment expenditure is not great enough to handle cyclone-induced output, income, and employment losses. It argues that investment decisions must consider regional patterns of output, income, and employment losses in different economic sectors to ensure cyclone-resilient development in Bangladesh.