Recovery from the Mega-quake in Japan: Evidence from Manufacturing Firms
Firms which seriously suffered from the mega-quake in the East Japan in 2011 vary in the period to recover from the disaster. This paper examines what factors prolonged the periods for their recovery, using an original survey of disaster-hit firms in Tohoku area. While the cutoff of electrical power, industrial water supplies and transport network prevented the firms from recovering at the early time just after the quake, our estimated result, based on quantile regression, reveals that the severing of the supply chain significantly prolonged the period for their recovery.
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