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The impacts of natural disasters on plants' growth: Evidence from the Great Hanshin-Awaji (Kobe) earthquake

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  • Tanaka, Ayumu

Abstract

This study is the first attempt to examine the impacts of a natural disaster at the plant level, focusing on the Great Hanshin-Awaji (Kobe) earthquake, which occurred in 1995 and affected numerous plants in Kobe city. In this study, I use plant-level data to re-examine the creative disaster hypothesis, which states that natural disasters enhance growth of firms or plants in stricken areas. I employ the matching method together with the difference-in-difference (DID) approach to reveal the quake's effects. While most country and firm-level evidences support the creative disaster hypothesis, this study shows that the plants that survived in Kobe's most devastated districts faced severe negative effects from the quake in terms of employment and value added growth during the subsequent three years.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:regeco:v:50:y:2015:i:c:p:31-41
    DOI: 10.1016/j.regsciurbeco.2014.11.002
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    Citations

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    Cited by:

    1. 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).
    2. repec:gam:jecomi:v:6:y:2018:i:2:p:26-:d:140097 is not listed on IDEAS
    3. Masashige Hamano & Wessel 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.
    4. F. Zhou & W.J.W. Botzen, 2017. "The Impact of Natural Disasters on Firm Growth in Vietnam: : Interaction with Financial Constraints," Working Papers 17-20, Utrecht School of Economics.
    5. Yusuke Matsuki & Shunsuke Managi, 2016. "The Impact Of Natural Disasters On Manufacturing: Plant-Level Analysis For The Great Hanshin-Awaji Earthquake," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-22, March.
    6. Aloysius Gunadi Brata & Henri L. F. De Groot & Wouter Zant, 2018. "Shaking up the Firm Survival: Evidence from Yogyakarta (Indonesia)," Economies, MDPI, Open Access Journal, vol. 6(2), pages 1-14, April.

    More about this item

    Keywords

    Natural disasters; Difference-in-difference; Plant growth;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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