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Research Papers, Lincoln University

Disasters are often followed by a large-scale stimulus supporting the economy through the built environment, which can last years. During this time, official economic indicators tend to suggest the economy is doing well, but as activity winds down, the sentiment can quickly change. In response to the damaging 2011 earthquakes in Canterbury, New Zealand, the regional economy outpaced national economic growth rates for several years during the rebuild. The repair work on the built environment created years of elevated building activity. However, after the peak of the rebuilding activity, as economic and employment growth retracts below national growth, we are left with the question of how the underlying economy performs during large scale stimulus activity in the built environment. This paper assesses the performance of the underlying economy by quantifying the usual, demand-driven level of building activity at this time. Applying an Input–Output approach and excluding the economic benefit gained from the investment stimulus reveals the performance of the underlying economy. The results reveal a strong growing underlying economy, and while convergence was expected as the stimulus slowed down, the results found that growth had already crossed over for some time. The results reveal that the investment stimulus provides an initial 1.5% to 2% growth buffer from the underlying economy before the growth rates cross over. This supports short-term economic recovery and enables the underlying economy to transition away from a significant rebuild stimulus. Once the growth crosses over, five years after the disaster, economic growth in the underlying economy remains buoyant even if official regional economic data suggest otherwise.

Research Papers, Lincoln University

The magnitude 7.8 earthquake that struck North Canterbury, on the east coast of New Zealand’s South Island on 14 November 2016 had significant impacts and implications for the community of Kaikōura and surrounding settlements. The magnitude and scope of this event has resulted in extensive and ongoing geological and geophysical research into the event. The current paper complements this research by providing a review of existing social science research and offering new analysis of the impact of the earthquake and its aftermath on community resilience in Kaikōura over the past five years. Results demonstrate the significant economic implications for tourism, and primary industries. Recovery has been slow, and largely dependent on restoring transportation networks, which helped catalyse cooperation among local hospitality providers. Challenges remain, however, and not all sectors or households have benefited equally from post-quake opportunities, and long-term recovery trajectories continue to be hampered by COVID-19 pandemic. The multiple ongoing and future stressors faced by Kaikōura require integrated and equitable approaches in order to build capability and capacity for locally based development pathways to ensure long-term community resilience.