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The Impacts of Natural Disasters on Plants' Growth: Evidence from the Great Hanshin-Awaji (Kobe) Earthquake


  • TANAKA Ayumu


The Great Hanshin-Awaji (Kobe) Earthquake in 1995 affected numerous plants in Kobe. In this study, I focus on this earthquake and use plant-level data to re-examine the creative disaster hypothesis which states that natural disasters enhance the growth of firms or plants in the affected areas. I employ the matching method and the difference-in-difference (DID) approach to reveal the effects of the quake. The results show that the plants that survived in the most devastated districts of Kobe faced severe negative effects in terms of employment growth and value added in the subsequent three years. This result is not consistent with previous empirical studies that support the creative disaster hypothesis.

Suggested Citation

  • TANAKA Ayumu, 2013. "The Impacts of Natural Disasters on Plants' Growth: Evidence from the Great Hanshin-Awaji (Kobe) Earthquake," Discussion papers 13051, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:dpaper:13051

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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. 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.
    3. Masashige Hamano & Wessel N. Vermeulen, "undated". "Adapting to within-country export barriers: Evidence from the Japan 2011 Tsunami," Working Papers 1706, Waseda University, Faculty of Political Science and Economics.

    More about this item

    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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