IDEAS home Printed from https://ideas.repec.org/p/pas/papers/2008-21.html
   My bibliography  Save this paper

Livelihood Recovery after Natural Disasters and the Role of Aid: The Case of the 2006 Yogyakarta Earthquake

Author

Listed:
  • Budy P. Resosudarmo
  • Catur Sugiyanto
  • Ari Kuncoro

Abstract

The 27 May 2006 Yogyakarta earthquake caused the death of more than 5.7 thousand people, more than 60 thousand people were injured and hundreds of thousands lost their houses. Bantul district was the most severely affected by the earthquake. This paper is an attempt to understand the determinants of livelihood recovery after this natural disaster and, in particular, the role of aid in that recovery process. A panel firm level survey was conducted visiting around 500 mostly small and micro enterprises in Bantul district twice: 6 months and a year after the earthquake. This paper argues that (1) smaller enterprises are more resilient and so able to bounce back faster, (2) an industrial cluster system within a subdistrict does provide support needed by firms to recover, (3) the quality of village infrastructure could be important, (4) it is important for donors not to give too much assurance of financial support to enterprises, but rather just to distribute it when it is actually available. The faster it is distributed, the better the impact on enterprises affected by the earthquake, and (4) although over a longer period of time, the effectiveness of aid might well diminish, aid does improve a firm’s ability to survive.

Suggested Citation

  • Budy P. Resosudarmo & Catur Sugiyanto & Ari Kuncoro, 2008. "Livelihood Recovery after Natural Disasters and the Role of Aid: The Case of the 2006 Yogyakarta Earthquake," Departmental Working Papers 2008-21, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2008-21
    as

    Download full text from publisher

    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2008/wp_econ_2008_21.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sato, Yuri, 2000. "How did the crisis affect small and medium-sized enterprises? -- from a field study of the metal-working industry in Java," The Developing Economies, Institute of Developing Economies, Japan External Trade Organization(JETRO), vol. 38(4), pages 572-595, December.
    2. Inha Oh & Jeong-Dong Lee & Almas Heshmati, 2008. "Total Factor Productivity in Korean Manufacturing Industries," Global Economic Review, Taylor & Francis Journals, vol. 37(1), pages 23-50.
    3. Suvadee Rungsomboon, 2005. "Deterioration of Firm Balance Sheet and Investment Behavior: Evidence from Panel Data on Thai Firms," Asian Economic Journal, East Asian Economic Association, vol. 19(3), pages 335-356, September.
    4. Robert Dekle & Cathy Karnchanasai & Pongsak Hoontrakul, 2005. "The Thai Currency Crisis: Financing Constraints, High Fixed Costs, and Corporate Governance," Asian Economic Papers, MIT Press, vol. 4(2), pages 60-87, Spring/Su.
    5. Prema-chandra Athukorala & Budy P. Resosudarmo, 2005. "The Indian Ocean Tsunami: Economic Impact, Disaster Management, and Lessons," Asian Economic Papers, MIT Press, vol. 4(1), pages 1-39, Winter.
    6. Youngjae Lim & Chin Hee Hahn, 2003. "Bankruptcy Policy Reform and Total Factor Productivity Dynamics in Korea," NBER Working Papers 9810, National Bureau of Economic Research, Inc.
    7. Dionisius Narjoko & Hal Hill, 2007. "Winners and Losers during a Deep Economic Crisis: Firm‐level Evidence from Indonesian Manufacturing," Asian Economic Journal, East Asian Economic Association, vol. 21(4), pages 343-368, December.
    8. Hung-ju Chen & Hsiao-tang Hsu, 2005. "The Role Of Firm Size In Controlling Output Decline During The Asian Financial Crisis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 30(2), pages 103-129, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Becerra, Oscar & Cavallo, Eduardo & Noy, Ilan, 2015. "Where is the money? Post-disaster foreign aid flows," Environment and Development Economics, Cambridge University Press, vol. 20(5), pages 561-586, October.
    2. Yoga Affandi & Masagus M. Ridhwan & Irwan Trinugroho & Danny Hermawan, 2023. "Digital Adoption, Business Performance, And Financial Literacy In Ultra-Micro, Micro, And Small Enterprises In Indonesia," Working Papers WP/13/2023, Bank Indonesia.
    3. Falentina, Anna T. & Resosudarmo, Budy P., 2019. "The impact of blackouts on the performance of micro and small enterprises: Evidence from Indonesia," World Development, Elsevier, vol. 124(C), pages 1-1.
    4. Aloysius Gunadi Brata & Henri L. F. De Groot & Wouter Zant, 2018. "Shaking up the Firm Survival: Evidence from Yogyakarta (Indonesia)," Economies, MDPI, vol. 6(2), pages 1-14, April.
    5. Yang, Hongbo & Dietz, Thomas & Yang, Wu & Zhang, Jindong & Liu, Jianguo, 2018. "Changes in Human Well-being and Rural Livelihoods Under Natural Disasters," Ecological Economics, Elsevier, vol. 151(C), pages 184-194.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. FERRAGINA, Anna Maria, 2013. "The Impact of FDI on Firm Survival and Employment: A Comparative Analysis for Turkey and Italy," CELPE Discussion Papers 127, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    2. Celeste Varum & Vera Rocha, 2013. "Employment and SMEs during crises," Small Business Economics, Springer, vol. 40(1), pages 9-25, January.
    3. Adalgiso Amendola & Anna Maria Ferragina & Rosanna Pittiglio & Filippo Reganati, 2012. "Are exporters and multinational firms more resilient over a crisis? First evidence for manufacturing enterprises in Italy," Economics Bulletin, AccessEcon, vol. 32(3), pages 1914-1926.
    4. Falck, Oliver & Heblich, Stephan & Link, Susanne, 2011. "The Evils of Forced Migration: Do Integration Policies Alleviate Migrants' Economic Situations?," Stirling Economics Discussion Papers 2011-14, University of Stirling, Division of Economics.
    5. Sergio A. Contreras, 2019. "Self-Employment in Times of Crisis: The Case of the Spanish Financial Crisis," Economies, MDPI, vol. 7(3), pages 1-14, August.
    6. Prema-chandra Athukorala, 2012. "Disaster, Generosity and Recovery: Indian Ocean Tsunami," Departmental Working Papers 2012-04, The Australian National University, Arndt-Corden Department of Economics.
    7. Altındağ, Onur & Bakış, Ozan & Rozo, Sandra V., 2020. "Blessing or burden? Impacts of refugees on businesses and the informal economy," Journal of Development Economics, Elsevier, vol. 146(C).
    8. Joachim Wagner & John P. Weche Gelübcke, 2016. "Risk or Resilience? The Role of Trade Integration and Foreign Ownership for the Survival of German Enterprises during the Crisis 2008–2010," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 11, pages 369-397, World Scientific Publishing Co. Pte. Ltd..
    9. Stephane Guimbert & Remco Oostendorp, 2016. "Risk Coping by Firms during the Crisis," Economic Development and Cultural Change, University of Chicago Press, vol. 65(1), pages 87-118.
    10. Brown, Sarah & Harris, Mark N. & Taylor, Karl, 2012. "Modelling charitable donations to an unexpected natural disaster: Evidence from the U.S. Panel Study of Income Dynamics," Journal of Economic Behavior & Organization, Elsevier, vol. 84(1), pages 97-110.
    11. Zulkefly Abdul Karim & Mohd Azlan Shah Zaidi, 2015. "Monetary Policy, Firm Size and Equity Returns in An Emerging Market: Panel Evidence of Malaysia," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 11(2), pages 29-55.
    12. repec:dau:papers:123456789/7780 is not listed on IDEAS
    13. Tulus T. H. Tambunan, 2019. "The impact of the economic crisis on micro, small, and medium enterprises and their crisis mitigation measures in Southeast Asia with reference to Indonesia," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 6(1), pages 19-39, January.
    14. RPIR Prasanna & JMHM Upulwehera & BDTN Senarath & GAKNJ Abeyrathne & PSK Rajapakshe & JMSB Jayasundara & EMS Ekanayake & Sisira Kumara Naradda Gamage, 2021. "Factors Determining the Competitive Strategic Positions of the SMEs in Asian Developing Nations: Case Study of SMEs in the Agricultural Sector in Sri Lanka," Economies, MDPI, vol. 9(4), pages 1-24, December.
    15. Iman Cheratian & Saleh Goltabar & Mohammad Reza Farzanegan, 2022. "Survival Strategies Under Sanctions: Firm-Level Evidence from Iran," Working Papers 1569, Economic Research Forum, revised 20 Aug 2022.
    16. Khanna, Gaurav & Newhouse, David & Paci, Pierella, 2011. "Fewer jobs or smaller paychecks ? aggregate crisis impacts in selected middle-income countries," Policy Research Working Paper Series 5791, The World Bank.
    17. Donghyun Oh & Almas Heshmati & Hans Lööf, 2012. "Technical change and total factor productivity growth for Swedish manufacturing and service industries," Applied Economics, Taylor & Francis Journals, vol. 44(18), pages 2373-2391, June.
    18. Melissa L. Finucane & Joie Acosta & Amanda Wicker & Katie Whipkey, 2020. "Short-Term Solutions to a Long-Term Challenge: Rethinking Disaster Recovery Planning to Reduce Vulnerabilities and Inequities," IJERPH, MDPI, vol. 17(2), pages 1-19, January.
    19. Latha Poonamallee & Simy Joy, 2019. "Key Elements Of Compassion Rousing Communication: Lessonsfrom Media Reports On Asian Tsunami In India," Working papers 350, Indian Institute of Management Kozhikode.
    20. Guimbert, Stephane & Oostendorp, Remco, 2012. "Weathering the storm : responses by Cambodian firms to the global financial crisis," Policy Research Working Paper Series 6220, The World Bank.
    21. Zubair, Siraz & Kabir, Rezaul & Huang, Xiaohong, 2020. "Does the financial crisis change the effect of financing on investment? Evidence from private SMEs," Journal of Business Research, Elsevier, vol. 110(C), pages 456-463.

    More about this item

    Keywords

    Micro and small enterprise; industrial organisation; development economics and natural disasters;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pas:papers:2008-21. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prema-chandra Athukorala (email available below). General contact details of provider: https://edirc.repec.org/data/asanuau.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.