How Do Supply Chain Networks Affect the Resilience of Firms to Natural Disasters? Evidence From the Great East Japan Earthquake

Todo, Yasuyuki; Nakajima, Kenichi; Matouš, Petr

doi:10.1111/jors.12119

Cited by 174 publications

(111 citation statements)

References 33 publications

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“…Todo et al (2015) find a positive net effect of supply chain networks on firm recovery after the Kobe Earthquake by using firm-level data in Japan. Carvalho et al (2016) provides a systematic quantification of the role of input-output linkages as a mechanism for the propagation and amplification of shocks and find that the propagation of the shock over input-output linkages can account for a 1.2 percentage point decline in Japan's gross output in the year following the 2011 Great East Earthquake.…”

Section: Literature Review On the Impact Of Natural Disastersmentioning

confidence: 98%

The Impact of Natural Disasters on Firm Growth in Vietnam: Interaction with Financial Constraints

Zhou

Botzen

2017

SSRN Journal

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The theory on the disaster impacts on firm growth is ambiguous and the empirical evidence on this topic is scarce, which hampers the design of disaster risk reduction and climate change adaptation policies. This paper estimates growth models of the impacts of natural disasters on labour, capital, and value-added growth of firms in the short run, and identifies the role of financial constraints in shaping disaster outcomes. The analysis uses a comprehensive enterprise census data (2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009) and also two different types of disaster measures from Vietnam: the physical intensity measures and the socioeconomic damage measures. We apply the Blundell-Bond generalized method of moments (GMM) to estimate firm level disaster impacts, and find robust evidence that natural disasters on average increase firm growth significantly. We also find stronger positive impacts in labour and output growth for more constrained firms. We argue that this occurs because financially more constrained firms substitute labour for capital during the reconstruction phase after a disaster.

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Section: Literature Review On the Impact Of Natural Disastersmentioning

confidence: 98%

The Impact of Natural Disasters on Firm Growth in Vietnam: Interaction with Financial Constraints

Zhou

Botzen

2017

SSRN Journal

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“…Secondly, the literature investigating the growth impacts of disasters often finds contradictory results (Cavallo et al 2013), suggesting the existence of multiple equilibria. Multiple equilibria could arise, for example, through network effects in the supply chain (Todo et al 2015), or through amplification processes leading to increases in public concern (Kasperson et al 1988).…”

Section: Introductionmentioning

confidence: 99%

Household migration in disaster impact analysis: incorporating behavioural responses to risk

Husby

Koks

2017

Nat Hazards

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Detailed estimates of economy-wide disaster losses provide important inputs for disaster risk management. The most common models used to estimate losses are inputoutput (IO) and computable general equilibrium (CGE) models. A key strength of these models is their ability to capture the ripple effects, whereby the impacts of a disaster are transmitted to regions and sectors that are not directly affected by the event. One important transmission channel is household migration. Changes in the spatial distribution of people are likely to have substantial impacts on local labour and housing markets. In this paper, we argue that IO and CGE models suffer from limitations in representing household migration under disaster risk. We suggest combining IO and CGE models with agent-based models to improve the representation of migration in disaster impact analysis.

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“…In the disaster areas of east Japan earthquake, questionnaire research was conducted to investigate the recovery speed in the production of private firms (Government office of Japan 2012; Wakasugi and Tanaka 2013; Todo et al 2015). Their results suggest that the recovery speed of regional production highly depends on the degree of destruction of the supply chain which composes industrial linkage in manufacturing sector within or outside of the disaster areas.…”

Section: Previous Studies and Scientific Inquiriesmentioning

confidence: 99%

Effects of restoration measures from the east Japan earthquake in the Iwate coastal area: application of a DSGE model

Kunimitsu

2017

Asia-Pac J Reg Sci

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Restoration investment after an earthquake and tsunami can improve regional production, but effects of investment emerge differently in production, investment and consumption. Conventional economic models cannot reproduce such chronological nonconformity among economic indices. This study aims to analyze whether the dynamic stochastic general equilibrium (DSGE) model can duplicate the chronological restoration path and nonconformity, and quantifies the efficiency of the restoration measures, such as restoration investment with fund transfer and rebuilding subsidy, in the Iwate coastal region, where the east Japan earthquake hit. The analytical results are as follows: (1) consumption after the earthquake follows a hump-shaped path, where peak point of consumption was delayed from production peak, but then recovered; (2) private investment and labor demand decrease by more than self-restoration does when the restoration measures end; and (3) restoration investment with fund transfer and rebuilding subsidy improves the economy by accelerating the reconstruction of damaged capital stocks, and the benefits of these two measures outweigh their respective costs. These findings show that the influence of an unforeseen and disastrous earthquake can be explained well by the forward-looking decisions on consumption and savings (equal to investment) endogenizing in the DSGE model.

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How Do Supply Chain Networks Affect the Resilience of Firms to Natural Disasters? Evidence From the Great East Japan Earthquake

Cited by 174 publications

References 33 publications

The Impact of Natural Disasters on Firm Growth in Vietnam: Interaction with Financial Constraints

The Impact of Natural Disasters on Firm Growth in Vietnam: Interaction with Financial Constraints

Household migration in disaster impact analysis: incorporating behavioural responses to risk

Effects of restoration measures from the east Japan earthquake in the Iwate coastal area: application of a DSGE model

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