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

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

Abstract

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.

Suggested Citation

  • Hayakawa, Kazunobu & Matsuura, Toshiyuki & Okubo, Fumihiro, 2014. "Firm-level impacts of natural disasters on production networks : evidence from a flood in Thailand," IDE Discussion Papers 445, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper445
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    Cited by:

    1. Hayato Kato & Toshihiro Okubo, 2017. "The Impact of a Natural Disaster on Foreign Direct Investment and Vertical Linkages," Keio-IES Discussion Paper Series 2017-018, Institute for Economics Studies, Keio University.

    More about this item

    Keywords

    Thailand; Japan; Foreign affiliated firm; International business enterprises; Industrial management; Risk management; Flood damage; Disasters; Natural disasters; Flooding; Production networks;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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