Role of industrial diversification and hurricane shock on regional economic resilience and post-disaster recovery

This study investigates how industrial diversification and geographic context influence the economic resilience of Florida counties to hurricane-induced shocks. Leveraging county-level panel data from 1990 to 2017, we use a fixed effects regression model to examine the effects of hurricane shock on unemployment rates and income per capita. Key findings reveal that while hurricanes significantly disrupt local economies, counties with more diversified industrial bases experience faster recoveries in both labor market and income performance. Coastal counties, despite being more frequently exposed to major hurricanes, tend to recover more quickly than their inland counterparts-largely due to more diversified, resourceful economic structures. Conversely, inland counties, typically reliant on agriculture, low paying concentrated economies, exhibit prolonged unemployment and income volatility. Interaction effects between hurricane shock and diversification confirm that diversity acts as a structural buffer, mitigating negative economic outcomes. The findings complemented by a case study of the two coastal counties that experienced a major hurricane have strong policy implications: disaster-prone regions with concentrated economies should prioritize diversification initiatives, workforce retraining, and investment in resilient sectors. The study contributes to disaster economics and regional planning literature by integrating structural, temporal, and geographic variables into a resilience framework.