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The Effectiveness of Pre-Disaster Planning and Post-Disaster Aid: Examining the impact on plants of the Great East Japan Earthquake

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  • Matthew A. COLE
  • Robert J R ELLIOTT
  • OKUBO Toshihiro
  • Eric STROBL

Abstract

We examine the extent to which pre-disaster planning and post-disaster aid can help firms to recover from a natural disaster event. Using detailed plant-level data covering the areas affected by the March 2011 Great East Japan Earthquake and tsunami, we find that neither pre-disaster planning nor post-disaster aid has a significant effect on the short term impact of the disaster in terms of the number of days that plants ceased operations. However, we do find evidence to suggest that post-disaster sales growth can be influenced by pre- and post-disaster policy. More specifically, we find that pre-disaster policies such as planning production substitution with other plants and making alternative transport arrangements affect sales post-disaster. We also discover that post-disaster aid from banks and from trading partners influences post-disaster sales but that government aid has no statistically significant effect.

Suggested Citation

  • Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2015. "The Effectiveness of Pre-Disaster Planning and Post-Disaster Aid: Examining the impact on plants of the Great East Japan Earthquake," Discussion papers 15097, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:15097
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    References listed on IDEAS

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    4. Tanaka, Ayumu, 2015. "The impacts of natural disasters on plants' growth: Evidence from the Great Hanshin-Awaji (Kobe) earthquake," Regional Science and Urban Economics, Elsevier, vol. 50(C), pages 31-41.
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    10. Yasuyuki Todo & Kentaro Nakajima & Petr Matous, 2015. "How Do Supply Chain Networks Affect The Resilience Of Firms To Natural Disasters? Evidence From The Great East Japan Earthquake," Journal of Regional Science, Wiley Blackwell, vol. 55(2), pages 209-229, March.
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    Cited by:

    1. Masashige Hamano & Vessel N Vermeulen, 2017. "Adapting to within-country export barriers: Evidence from the Japan 2011 Tsunami," OxCarre Working Papers 198, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    2. Evgenidis, Anastasios & Hamano, Masashige & Vermeulen, Wessel N., 2021. "Economic consequences of follow-up disasters: Lessons from the 2011 Great East Japan Earthquake," Energy Economics, Elsevier, vol. 104(C).

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