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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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    6. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2013. "Natural Disasters and Plant Survival: The impact of the Kobe earthquake," Discussion papers 13063, Research Institute of Economy, Trade and Industry (RIETI).
    7. 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.
    8. Loayza, Norman V. & Olaberría, Eduardo & Rigolini, Jamele & Christiaensen, Luc, 2012. "Natural Disasters and Growth: Going Beyond the Averages," World Development, Elsevier, vol. 40(7), pages 1317-1336.
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    Cited by:

    1. 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).
    2. Masashige Hamano & Wessel N. Vermeulen, 2017. "Adapting to within-country export barriers: Evidence from the Japan 2011 Tsunami," Working Papers 1706, Waseda University, Faculty of Political Science and Economics.

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