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Firm-level impacts of natural disasters on production networks : evidence from a flood in Thailand

  • Hayakawa, Kazunobu
  • Matsuura, Toshiyuki
  • Okubo, Fumihiro

In this paper, we explore the firm-level impacts of flooding in Thailand in 2011, specifically those on the procurement patterns at Japanese affiliates in Thailand. Our findings are as follow. First, the damaged small firms are more likely to lower their local procurement share, particularly the share of procurement from other Japanese-owned firms in Thailand. Second, damaged young firms and damaged old firms are more likely to raise the shares of imports from Japan and China, respectively. Third, there are no impacts on imports from ASEAN and other countries. These findings are useful for uncovering how multinational firms adjust their production networks before and after natural disasters.

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File URL: http://ir.ide.go.jp/dspace/bitstream/2344/1299/1/ARRIDE_Discussion_No.445_hayakawa.pdf
File Function: First version, 2014
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Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 445.

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Date of creation: Feb 2014
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Publication status: Published in IDE Discussion Paper. No. 445. 2014.2
Handle: RePEc:jet:dpaper:dpaper445
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  1. Eduardo Cavallo & Andrew Powell & Oscar Becerra, 2010. "Estimating the Direct Economic Damages of the Earthquake in Haiti," Economic Journal, Royal Economic Society, vol. 120(546), pages F298-F312, 08.
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  8. 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).
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  12. Esmeralda A. Ramalho & Joaquim J.S. Ramalho & José M.R. Murteira, 2009. "Alternative estimating and testing empirical strategies for fractional regression models," CEFAGE-UE Working Papers 2009_08, University of Evora, CEFAGE-UE (Portugal).
  13. Matthew E. Kahn, 2005. "The Death Toll from Natural Disasters: The Role of Income, Geography, and Institutions," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 271-284, May.
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