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Severe flooding events often cause significant damage to an area, including affecting the local economy, disrupting transportation, and damaging infrastructure. While raw statistics offer some understanding of crop and property-related damages, resulting from large-scale floods, we also need to consider the longer-term impacts and recovery within an area and the interaction between adjacent areas during the recovery process. In this paper, we examine the impacts of major and minor flood events on business employment and the number of establishments in different sectors of the economy. While we find that flood events had a negative short-run impact on agricultural services and particularly small establishments, estimations show positive impacts in the service sector. We also identify significant spatial spillovers.

The paper discusses the changing concept of poverty in general and points out the limitations of the poverty line generally used for identifying the poor. Instead of traditional rule based on “income” and “expenditure” approach the new approach is discussed, which appears more relevant in the present scenarios. Using scan statistic methods the most likely and secondary clusters of districts are identified by the SaTScan Software.