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The Impact Of Natural Disasters On Manufacturing: Plant-Level Analysis For The Great Hanshin-Awaji Earthquake

Author

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  • YUSUKE MATSUKI

    (Faculty of Economics, Nagasaki University, 4–2–1 Katafuchi, Nagasaki 850–8506, Japan)

  • SHUNSUKE MANAGI

    (Department of Urban and Environmental Engineering, Graduate School of Engineering, Kyushu University, 744 Motooka, Nishi–ku, Fukuoka 819–0395, Japan)

Abstract

This paper investigates the impact of the Great Hanshin-Awaji earthquake on plant input, output, total factor productivity (TFP) and exit using Japanese plant-level manufacturing data. We employ the difference-in-differences (DID) estimation method to identify the effects of the quake and find that the quake had an impact on manufacturing. The results suggest that production was influenced by the quake, particularly in the first year after the quake. Furthermore, the quake did not influence manufacturing industries uniformly. The effects are different based on specifications, variables, and industries. However, the quake had little impact on the exit of plants.

Suggested Citation

  • Yusuke Matsuki & Shunsuke Managi, 2016. "The Impact Of Natural Disasters On Manufacturing: Plant-Level Analysis For The Great Hanshin-Awaji Earthquake," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-22, March.
    • Handle: RePEc:wsi:serxxx:v:61:y:2016:i:01:n:s0217590816400105
    DOI: 10.1142/S0217590816400105
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    References listed on IDEAS

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    Cited by:

    1. Yuzuka Kashiwagi, 2020. "The Heterogeneous Impact of Post-Disaster Subsidies on Small and Medium Firms," Economics of Disasters and Climate Change, Springer, vol. 4(3), pages 601-623, October.

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