Indonesia is one of the developing countries most vulnerable to disasters. One of the most disaster-prone Indonesian provinces is West Sumatra province. Based on historical records, there have been three major earthquakes and tsunamis that hit this region. The last time occurred in 2009 and affected almost all areas of this province with losses of around 4.8 billion rupees or 64 trillion dollars. This condition leads to disruption of economic activities and losses resulting from distraction of business. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essayNatural disasters that automatically affect these areas are seen as a deterioration in the economy (Okuyama, 2013) and the development interval of several years after the earthquake. This happens due to the destruction of infrastructure and makes most of the victims jobless and displaced (Okuyama, 2003). Many studies have been conducted regarding the economic impact of natural disasters. There are two types of studies on this: the economic impact of natural disasters in the long term and the economic impact in the short term. Okuyama (2015) argues that the long-term economic effect of the disaster is analyzed with an econometric model with the aim of analyzing the effect of stock damage influencing the long-term growth path. While the draw effect of the disaster economy uses the IO model, the social accounting matrix or the computable general equilibrium (CGE) model to analyze the structural changes in the economy that differentiate the negative impact of damages and the positive impact of recovery and reconstruction activity. Based on Okuyama (2015) in the long run, the disaster effect occurred in the main area where the event occurred. The damage from the disaster led to the recovery of the area and made it necessary to renew the system and technology. While Coffman (2011) argues that, in the long term, the economic condition of the disaster-stricken region never fully recovered after the disaster. This is due to the difficulties of the reconstruction area. On the other hand, for the short term Guimares (1992) and Strobl (2011) argue that economic growth tends to decrease in case of disaster, but recovery from the disaster gives influence to economic growth. Lazzaroni (2014) also stated that at the time of the disaster there was a significant effect on the direct costs consisting of socio-economic factors in increasing or decreasing the harmful effects of the disaster. While regarding indirect costs, the impact of the natural disaster on GDP was an insignificant effect. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Based on this topic, this study is done to identify whether the disaster in West Sumatra province brings about changes in the economic structure after the recovery activity which will identify the impact of the damage and recovery activity on the economic structure.