Impact of Natural Disasters on Industrial Agglomeration: A Case of the 1923 Great Kanto Earthquake
AbstractOne of the main implications of the New Economic Geography, developed since the 1990s, is that a temporary shock can create a persistent impact on the geographic distribution of economic activities because of multiple equilibria. This paper investigates the long-run impact of a temporary shock on the geographic distribution of industries in Tokyo Prefecture, Japan, using the Great Kanto Earthquake in 1923 as a natural experiment. It is revealed that the temporary shock from the Great Kanto Earthquake was basically dissipated by 1936, just before the full-scale war with China broke out. On the other hand, through industry-level investigation, it is found that with respect to the machinery and metal industry, the impact was persistent and remained even in 1936. These findings suggest the importance of the industrial structure and transaction networks within industry in the mechanism determining geographic distribution of industries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-602.
Date of creation: Nov 2008
Date of revision:
Contact details of provider:
Postal: Hongo 7-3-1, Bunkyo-ku, Tokyo 113-0033
Web page: http://www.cirje.e.u-tokyo.ac.jp/index.html
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-12-01 (All new papers)
- NEP-DEV-2008-12-01 (Development)
- NEP-HIS-2008-12-01 (Business, Economic & Financial History)
- NEP-URE-2008-12-01 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Donald R. Davis & David E. Weinstein, 2004.
"A search for multiple equilibria in urban industrial structure,"
0304-12, Columbia University, Department of Economics.
- Donald R. Davis & David E. Weinstein, 2008. "A Search For Multiple Equilibria In Urban Industrial Structure," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 29-65.
- David E. Weinstein & Donald R. Davis, 2004. "Search for Multiple Equilibria in Urban Industrial Structure," Econometric Society 2004 North American Winter Meetings 639, Econometric Society.
- Donald R. Davis & David E. Weinstein, 2004. "A Search for Multiple Equilibria in Urban Industrial Structure," NBER Working Papers 10252, National Bureau of Economic Research, Inc.
- Evans, William N. & Garthwaite, Craig & Wei, Heng, 2008. "The impact of early discharge laws on the health of newborns," Journal of Health Economics, Elsevier, vol. 27(4), pages 843-870, July.
- Nakajima, Kentaro, 2008. "Economic division and spatial relocation: The case of postwar Japan," Journal of the Japanese and International Economies, Elsevier, vol. 22(3), pages 383-400, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CIRJE administrative office).
If references are entirely missing, you can add them using this form.