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Economic Activities and Regional Correlation During Economic and Natural Disasters

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  • Nagayasu, Jun

Abstract

Life is characterized by risks of different features and origins. Examining the economic and natural disasters that have occurred in Japan in the past decades, we show that regional relationships strengthen during chaotic moments, such as the Lehman Brothers collapse, the Great East Japan Earthquake, and the coronavirus disease (COVID-19) pandemic. Moreover, we find that business prospects are a good predictor of labor market conditions, and employment opportunities deteriorate more severely when regions are highly correlated. Our study indicates the side effect of market integration and the relevance of regional economic centers in cushioning nationwide economic and natural shocks.

Suggested Citation

  • Nagayasu, Jun, 2020. "Economic Activities and Regional Correlation During Economic and Natural Disasters," MPRA Paper 103084, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:103084
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    References listed on IDEAS

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    1. Kondo, Ayako, 2018. "The effects of supply chain disruptions caused by the Great East Japan Earthquake on workers," Japan and the World Economy, Elsevier, vol. 47(C), pages 40-50.
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    6. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411.
    7. Jun Nagayasu, 2017. "Regional inflation, spatial locations and the Balassa-Samuelson effect: Evidence from Japan," Urban Studies, Urban Studies Journal Limited, vol. 54(6), pages 1482-1499, May.
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    More about this item

    Keywords

    Lehman Brothers collapse; Great East Japan Earthquake; COVID-19; regional heterogeneity; regional correlation;
    All these keywords.

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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