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This paper is the first to examine the short term local economic impact of tropical cyclones by estimating the effects on monthly nightlight intensity. More specifically, for Guangdong Province in Southern China, we proxy monthly economic activity with remote sensing derived monthly night time light intensity and combine this with local measures of wind speed derived from a tropical cyclone wind field model. Our regression analysis reveals that there is only a significant (negative) impact in the month of the typhoon strike and nothing thereafter. Understanding that typhoons are inherently a short-term phenomenon has possible implications for studies using more aggregate data.

The Short-Term Economic Impact of Tropical Cyclones: Satellite Evidence from Guangdong Province