Natural Disasters and the Birth, Life and Death of Plants: The Case of the Kobe Earthquake
In recent years, natural disasters from Hurricane Katrina to the Fukushima earthquake have grabbed the attention of the public, policymakers and academics. In this paper we contribute to this relatively new literature and examine the impact of the 1995 Kobe earthquake on the survival of manufacturing plants, their post-earthquake economic performance, and the birth of new plants. Using geo-coded plant location and unique building-level surveys we are able to identify for the first time the actual damage to the building where each plant was located at the time of the earthquake. Including plant and building-characteristics as well as district-level variables to control for spatial dependencies, our results show that damaged plants were considerably more likely to fail than undamaged plants and that this effect persisted for up to seven years. Further analysis shows that surviving plants experienced a reduction in total employment and value added as a result of earthquake damage. However, we also find some evidence of creative destruction with the average surviving plant experiencing a time limited increase in productivity following the earthquake. On average, earthquake damage tended to deter plant births, although severe damage in an area appears to have acted as a stimulus to births.
|Date of creation:||25 Feb 2014|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 33 1 53 63 36 00
Web page: http://www.ipag.fr
More information through EDIRC
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.:
- Holger G�rg & Eric Strobl, 2003.
University of Manchester, vol. 71(1), pages 1-19, January.
- Noy, Ilan, 2009.
"The macroeconomic consequences of disasters,"
Journal of Development Economics,
Elsevier, vol. 88(2), pages 221-231, March.
- Sarah Bridges & Alessandra Guariglia, 2008. "Financial Constraints, Global Engagement, And Firm Survival In The United Kingdom: Evidence From Micro Data," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(4), pages 444-464, 09.
- Thomas Fomby & Yuki Ikeda & Norman V. Loayza, 2013.
"The Growth Aftermath Of Natural Disasters,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 28(3), pages 412-434, 04.
- Loayza, Norman V. & Olaberría, Eduardo & Rigolini, Jamele & Christiaensen, Luc, 2012.
"Natural Disasters and Growth: Going Beyond the Averages,"
Elsevier, vol. 40(7), pages 1317-1336.
- Loayza, Norman & Olaberria, Eduardo & Rigolini, Jamele & Christiaensen, Luc, 2009. "Natural disasters and growth - going beyond the averages," Policy Research Working Paper Series 4980, The World Bank.
- Andrew B. Bernard & J. Bradford Jensen, 2006.
"Firm Structure, Multinationals, and Manufacturing Plant Deaths,"
Working Paper Series
WP06-7, Peterson Institute for International Economics.
- Andrew B Bernard & J. Bradford Jensen, 2007. "Firm Structure, Multinationals, and Manufacturing Plant Deaths," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 193-204, May.
- J. Bradford Jensen & Andrew Bernard, 2005. "Firm Structure, Multinationals, and Manufacturing Plant Deaths," Working Papers 05-18, Center for Economic Studies, U.S. Census Bureau.
- Mark Skidmore & Hideki Toya, 2005.
"Economic Development and the Impacts of Natural Disasters,"
05-04, UW-Whitewater, Department of Economics.
- Toya, Hideki & Skidmore, Mark, 2007. "Economic development and the impacts of natural disasters," Economics Letters, Elsevier, vol. 94(1), pages 20-25, January.
- Audretsch, David B & Mahmood, Talat, 1995. "New Firm Survival: New Results Using a Hazard Function," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 97-103, February.
- Frank M.H. Neffke & Martin Henning & Ron Boschma, 2012.
"The impact of aging and technological relatedness on agglomeration externalities: a survival analysis,"
Journal of Economic Geography,
Oxford University Press, vol. 12(2), pages 485-517, March.
- Ron Boschma & Martin Henning & Frank Neffke, 2009. "The impact of aging and technological relatedness on agglomeration externalities: a survival analysis," LSE Research Online Documents on Economics 33498, London School of Economics and Political Science, LSE Library.
- Ron Boschma & Martin Henning & Frank Neffke, 2009. "The Impact of Aging and Technological Relatedness on Agglomeration Externalities: A Survival Analysis," SERC Discussion Papers 0036, Spatial Economics Research Centre, LSE.
- Mark J. Garmaise & Tobias J. Moskowitz, 2009. "Catastrophic Risk and Credit Markets," Journal of Finance, American Finance Association, vol. 64(2), pages 657-707, 04.
- Guoying Deng & Li Gan & Manuel A. Hernandez, 2013. "Do People Overreact? Evidence from the Housing Market After the Wenchuan Earthquake," NBER Working Papers 19515, National Bureau of Economic Research, Inc.
- Albala-Bertrand, J. M., 1993. "Political Economy of Large Natural Disasters: With Special Reference to Developing Countries," OUP Catalogue, Oxford University Press, number 9780198287650.
- Crespo Cuaresma & Hlouskova & Obersteiner, 2008. "Natural Disasters As Creative Destruction? Evidence From Developing Countries," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 214-226, 04.
- Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 227-45, September.
- Mark Skidmore & Hideki Toya, 2002. "Do Natural Disasters Promote Long-Run Growth?," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 664-687, October.
- Andrea Leiter & Harald Oberhofer & Paul Raschky, 2009. "Creative Disasters? Flooding Effects on Capital, Labour and Productivity Within European Firms," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(3), pages 333-350, July.
- Richard Disney & Jonathan Haskel & Ylva Heden, 2003. "Entry, Exit and Establishment Survival in UK Manufacturing," Journal of Industrial Economics, Wiley Blackwell, vol. 51(1), pages 91-112, 03.
- Oliver Falck, 2007.
"Survival chances of new businesses: do regional conditions matter?,"
Taylor & Francis Journals, vol. 39(16), pages 2039-2048.
- Falck, Oliver, 2007. "Survival chances of new businesses: Do regional conditions matter?," Munich Reprints in Economics 20493, University of Munich, Department of Economics.
- Rajshree Agarwal & Michael Gort, 2002. "Firm and Product Life Cycles and Firm Survival," American Economic Review, American Economic Association, vol. 92(2), pages 184-190, May.
- Tobias N. Rasmussen, 2004. "Macroeconomic Implications of Natural Disasters in the Caribbean," IMF Working Papers 04/224, International Monetary Fund.
- Stanley Smith & Christopher McCarty, 1996. "Demographic effects of natural disasters: a case study of hurricane andrew," Demography, Springer, vol. 33(2), pages 265-275, May.
- Hallegatte, Stéphane & Dumas, Patrice, 2009. "Can natural disasters have positive consequences? Investigating the role of embodied technical change," Ecological Economics, Elsevier, vol. 68(3), pages 777-786, January.
- Agarwal, Rajshree & Gort, Michael, 1996. "The Evolution of Markets and Entry, Exit and Survival of Firms," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 489-98, August.
When requesting a correction, please mention this item's handle: RePEc:ipg:wpaper:2014-114. 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: (Ingmar Schumacher)
If references are entirely missing, you can add them using this form.