PurposeThe purpose of this paper is to evaluate the effect of floods and the role of financial development on per capita gross state domestic product (GSDP) growth, controlling for growth-enhancing factors across Indian states.Design/methodology/approachThe paper uses the pooled mean group (PMG) method using state-level panel data for 19 Indian states over the period 1981-2011.FindingsThe PMG estimate shows that floods negatively affect the per capita GSDP growth in the long run. The results show that the mean of economic losses, the population affected and the area affected by floods increase by 10 per cent, leading to a decline in per capita GSDP growth by 0.0303, 0.0633 and 0.0232 per cent, respectively, in the long run. Furthermore, the population affected by floods exerts a higher adverse impact on the per capita GSDP growth compared to other flood measures. The results further show that states with better financial development experience a higher per capita GSDP growth, supported by additional capital expenditure, enrolment in higher education, better road infrastructure and higher urbanization. The crime rate is negatively correlated with per capita GSDP growth.Originality/valueThe results based on PMG estimates suggest that not only floods but also crime activities adversely affect the per capita GSDP growth across Indian states. Better financial market increases the per capita GSDP growth in the long run. This study not only contributes to empirical growth literature but also provides some useful policy suggestions. Moreover, the results lead to the conclusion that long-term flood management policies are essential to mitigate the adverse impact of floods on per capita GSDP growth across Indian states.

中文翻译：

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重新思考洪水和金融发展对经济增长的影响

目的本文的目的是评估洪水的影响和金融发展对人均州国内生产总值 (GSDP) 增长的作用，控制印度各州的增长促进因素。设计/方法/方法本文使用汇总平均值组 (PMG) 方法使用 1981-2011 年期间印度 19 个州的州级面板数据。结果 PMG 估计显示，从长远来看，洪水对人均 GSDP 增长产生负面影响。结果表明，从长期来看，经济损失、受灾人口和受洪水影响面积均值增加10%，导致人均GSDP增长率分别下降0.0303、0.0633和0.0232%。此外，与其他防洪措施相比，受洪水影响的人口对人均 GSDP 增长的不利影响更大。结果进一步表明，在额外资本支出、高等教育入学率、更好的道路基础设施和更高的城市化程度的支持下，金融发展较好的州的人均 GSDP 增长率较高。犯罪率与人均 GSDP 增长呈负相关。原创性/价值基于 PMG 估计的结果表明，不仅洪水而且犯罪活动对印度各州的人均 GSDP 增长产生不利影响。从长远来看，更好的金融市场会增加人均 GSDP 的增长。本研究不仅有助于实证增长文献，还提供了一些有用的政策建议。而且，