IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Supply Chain Disruptions: Evidence from the Great East Japan Earthquake

  • Vasco M. CARVALHO
  • NIREI Makoto
  • SAITO Yukiko

This paper quantifies the spillover effect of exogenous shocks, such as earthquakes, on other firms through the supply chain network. Combining micro data on inter-firm transaction networks and geographic information systems, we examine firms' sales growth and transaction relationships outside the tsunami-hit areas before and after the Great East Japan Earthquake. We find that sales growth shows a negative but insignificant effect for firms with suppliers in the affected areas and a negative and significant effect for firms with customers in the affected areas. When we focus on exiting firms in the affected areas as the firms from where the spillovers originated, the sales growth of linked firms outside the affected areas exhibits negative and significant effects for both upstream and downstream firms. Furthermore, significantly negative effects on downstream firms are shown for not only directly linked firms but also indirectly linked firms, with two and three degrees of separation. Finally, we find that firms tend to establish new transactions when they have transaction partners in the affected areas.

If 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.

File URL: http://www.rieti.go.jp/jp/publications/dp/14e035.pdf
Download Restriction: no

Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 14035.

as
in new window

Length: 16 pages
Date of creation: Jun 2014
Date of revision:
Handle: RePEc:eti:dpaper:14035
Contact details of provider: Postal:
11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901

Phone: +81-3-3501-1363
Fax: +81-3-3501-8577
Web page: http://www.rieti.go.jp/
Email:


More information through EDIRC

References listed on IDEAS
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.:

as in new window
  1. Strobl, Eric, 2008. "The Economic Growth Impact of Hurricanes: Evidence from US Coastal Counties," IZA Discussion Papers 3619, Institute for the Study of Labor (IZA).
  2. Holly, S. & Petrella, I., 2010. "Factor Demand Linkages, Technology Shocks and the Business Cycle," Cambridge Working Papers in Economics 1001, Faculty of Economics, University of Cambridge.
  3. TODO Yasuyuki & NAKAJIMA Kentaro & Petr MATOUS, 2013. "How Do Supply Chain Networks Affect the Resilience of Firms to Natural Disasters? Evidence from the Great East Japan Earthquake," Discussion papers 13028, Research Institute of Economy, Trade and Industry (RIETI).
  4. SAITO (UMENO) Yukiko & WATANABE Tsutomu & IWAMURA Mitsuru, 2007. "Do Larger Firms Have More Interfirm Relationships?," Discussion papers 07028, Research Institute of Economy, Trade and Industry (RIETI).
  5. Hosono, Kaoru & Miyakawa, Daisuke & Uchino, Taisuke & Hazama, Makoto & Ono, Arito & Uchida, Hirofumi & Uesugi, Iichiro, 2012. "Natural Disasters, Damage to Banks, and Firm Investment," Working Paper Series 18, Center for Interfirm Network, Institute of Economic Research, Hitotsubashi University.
  6. SAITO Yukiko, 2012. "The Impact of the Great East Japan Earthquake on Companies in the Non-affected Areas: Structure of the inter-company network of supply chains and its implication (Japanese)," Discussion Papers (Japanese) 12020, Research Institute of Economy, Trade and Industry (RIETI).
  7. NAKAJIMA Kentaro & SAITO Yukiko Umeno & UESUGI Iichiro, 2012. "Localization of Interfirm Transaction Relationships and Industry Agglomeration," Discussion papers 12023, Research Institute of Economy, Trade and Industry (RIETI).
  8. Vasco M Carvalho, 2008. "Aggregate Fluctuations and the Network Structure of Intersectoral Trade," 2008 Meeting Papers 1062, Society for Economic Dynamics.
  9. Ilan Noy, 2007. "The Macroeconomic Consequences of Disasters," Working Papers 200707, University of Hawaii at Manoa, Department of Economics.
  10. Andrew T. Foerster & Pierre-Daniel G. Sarte & Mark W. Watson, 2008. "Sectoral vs. aggregate shocks : a structural factor analysis of industrial production," Working Paper 08-07, Federal Reserve Bank of Richmond.
  11. SAITO Yukiko, 2013. "Role of Hub Firms in Geographical Transaction Network," Discussion papers 13080, Research Institute of Economy, Trade and Industry (RIETI).
  12. Andrew B. BERNARD & Andreas MOXNES & SAITO Yukiko, 2014. "Geography and Firm Performance in the Japanese Production Network," Discussion papers 14034, Research Institute of Economy, Trade and Industry (RIETI).
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:14035. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.