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Worldwide economic effects of disruptions in the production chain: the 2011 Japanese disasters

Author

Listed:
  • José Manuel Rueda-Cantuche
  • Iñaki Arto
  • Valeria Andreoni
  • José M. Rueda-Cantuche

Abstract

After around one year from the natural disaster that affected Japan on March 2011, large uncertainty still exists in the quantification of the global economic impacts. The largest parts of studies mainly accounts for the physical damage excluding the cascading effects generated on world economies. The lack of data able to capture the trade relationships between countries and commodities and the limited use of multiregional input-output models make difficult any kind of estimations oriented to capture the total effects generated by disruption in the international production chain. By combining a multiregional input-output model (MRIO) and the recently published World Input-Output Database (WIOD), this paper provides the first attempt of estimation of global economic impacts. Starting from data related to the drop of exports of Japanese intermediate products, effects on value added and employment have been quantified. Using data disaggregated by commodities, industries and countries, this paper make possible to investigate the most affected geographical areas and the largest involved economic activities.

Suggested Citation

  • José Manuel Rueda-Cantuche & Iñaki Arto & Valeria Andreoni & José M. Rueda-Cantuche, 2012. "Worldwide economic effects of disruptions in the production chain: the 2011 Japanese disasters," EcoMod2012 4088, EcoMod.
    • Handle: RePEc:ekd:002672:4088
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    References listed on IDEAS

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