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Natural disasters and social capital formation: The impact of the Great Hanshin-Awaji earthquake

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  • Yamamura, Eiji

Abstract

The Great Hanshin-Awaji (Kobe) earthquake hit Japan in 1995, causing devastating damage to the economic landscape of southern-central Japan. However, the earthquake also caused people to realize the importance of social capital in Japan. Based on a large, individual-level database comprising 488,223 observations, this study investigates how and the extent to which the earthquake enhanced the investment in social capital through participation in community activity. The differences-in-differences method was used, and the following key findings were obtained: (1) In Japan, people were more likely to invest in social capital in 1996 than in 1991, (2) the effects of the earthquake decreased as the distance of one’s place of residence increased from Kobe, and (3) he earthquake significantly increased the social capital investment rate of Kobe residents, whereas it had no significant influence on the investment rate of residents of large cities close to Kobe.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 44493.

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Date of creation: 17 Feb 2013
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Handle: RePEc:pra:mprapa:44493

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Keywords: Natural disasters; social capital; volunteer activities;

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  1. Berggren, Niclas & Jordahl, Henrik, 2005. "Free to Trust? Economic Freedom and Social Capital," Working Paper Series 2005:2, Uppsala University, Department of Economics.
  2. Yasuyuki Sawada, 2007. "The impact of natural and manmade disasters on household welfare," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 59-73, December.
  3. Yasuyuki Sawada & Satoshi Shimizutani, 2007. "Consumption insurance against natural disasters: evidence from the Great Hanshin-Awaji (Kobe) earthquake," Applied Economics Letters, Taylor & Francis Journals, vol. 14(4), pages 303-306.
  4. Luechinger, Simon & Raschky, Paul A., 2009. "Valuing flood disasters using the life satisfaction approach," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 620-633, April.
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  6. Yamamura, Eiji, 2009. "Comparison of the effects of homeownership by individuals and their neighbors on social capital formation: Evidence from Japanese General Social Surveys," MPRA Paper 19495, University Library of Munich, Germany.
  7. Gustavsson, Magnus & Jordahl, Henrik, 2006. "Inequality and Trust in Sweden: Some Inequalities are More Harmful than Others," Working Paper Series 673, Research Institute of Industrial Economics.
  8. Andrew Leigh, 2006. "Trust, Inequality, and Ethnic Heterogeneity," CEPR Discussion Papers 511, Centre for Economic Policy Research, Research School of Economics, Australian National University.
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  10. Leigh, Andrew, 2006. "Does equality lead to fraternity?," Economics Letters, Elsevier, vol. 93(1), pages 121-125, October.
  11. Eduardo Cavallo & Andrew Powell & Oscar Becerra, 2010. "Estimating the Direct Economic Damages of the Earthquake in Haiti," Economic Journal, Royal Economic Society, vol. 120(546), pages F298-F312, 08.
  12. Eiji Yamamura, 2013. "Natural Disasters and Participation in Volunteer Activities: A Case Study of the Great Hanshin-Awaji Earthquake," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 84(1), pages 103-117, 03.
  13. Mark Skidmore & Hideki Toya, 2002. "Do Natural Disasters Promote Long-Run Growth?," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 664-687, October.
  14. Marcel Fafchamps, 2005. "Development and Social Capital," Economics Series Working Papers GPRG-WPS-007, University of Oxford, Department of Economics.
  15. Eiji Yamamura, 2010. "Effects of Interactions among Social Capital, Income and Learning from Experiences of Natural Disasters: A Case Study from Japan," Regional Studies, Taylor & Francis Journals, vol. 44(8), pages 1019-1032.
  16. Yasuyuki Sawada & Satoshi Shimizutani, 2008. "How Do People Cope with Natural Disasters? Evidence from the Great Hanshin-Awaji (Kobe) Earthquake in 1995," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 40(2-3), pages 463-488, 03.
  17. Yamamura, Eiji, 2012. "Social capital, household income, and preferences for income redistribution," European Journal of Political Economy, Elsevier, vol. 28(4), pages 498-511.
  18. DiPasquale, Denise & Glaeser, Edward L., 1999. "Incentives and Social Capital: Are Homeowners Better Citizens?," Journal of Urban Economics, Elsevier, vol. 45(2), pages 354-384, March.
  19. Mark Skidmore & Hideki Toya, 2005. "Economic Development and the Impacts of Natural Disasters," Working Papers 05-04, UW-Whitewater, Department of Economics.
  20. Sam Whitt & Rick K. Wilson, 2007. "Public Goods in The Field: Katrina Evacuees in Houston," Southern Economic Journal, Southern Economic Association, vol. 74(2), pages 377-387, October.
  21. Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
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  1. Natural disasters and social capital (Japan)
    by UDADISI in UDADISI on 2013-03-25 12:10:00

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