Impact of Natural Disasters on Industrial Agglomeration: A Case of the 1923 Great Kanto Earthquake
One of the main implications of the New Economic Geography, developed since the 1990s, is that a temporary shock can create a persistent impact on the geographic distribution of economic activities because of multiple equilibria. This paper investigates the long-run impact of a temporary shock on the geographic distribution of industries in Tokyo Prefecture, Japan, using the Great Kanto Earthquake in 1923 as a natural experiment. It is revealed that the temporary shock from the Great Kanto Earthquake was basically dissipated by 1936, just before the full-scale war with China broke out. On the other hand, through industry-level investigation, it is found that with respect to the machinery and metal industry, the impact was persistent and remained even in 1936. These findings suggest the importance of the industrial structure and transaction networks within industry in the mechanism determining geographic distribution of industries.
|Date of creation:||Nov 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.cirje.e.u-tokyo.ac.jp/index.html
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.:
- Nakajima, Kentaro, 2008. "Economic division and spatial relocation: The case of postwar Japan," Journal of the Japanese and International Economies, Elsevier, vol. 22(3), pages 383-400, September.
- Donald R. Davis & David E. Weinstein, 2008.
"A Search For Multiple Equilibria In Urban Industrial Structure,"
Journal of Regional Science,
Wiley Blackwell, vol. 48(1), pages 29-65.
- Donald R. Davis & David E. Weinstein, 2004. "A Search for Multiple Equilibria in Urban Industrial Structure," NBER Working Papers 10252, National Bureau of Economic Research, Inc.
- David E. Weinstein & Donald R. Davis, 2004. "Search for Multiple Equilibria in Urban Industrial Structure," Econometric Society 2004 North American Winter Meetings 639, Econometric Society.
- Cha, Myung Soo, 2003. "Did Takahashi Korekiyo Rescue Japan from the Great Depression?," The Journal of Economic History, Cambridge University Press, vol. 63(01), pages 127-144, March.
- Charles H. Anderton & John R. Carter, 2001. "The Impact of War on Trade: An Interrupted Times-Series Study," Journal of Peace Research, Peace Research Institute Oslo, vol. 38(4), pages 445-457, July.
- Evans, William N. & Garthwaite, Craig & Wei, Heng, 2008. "The impact of early discharge laws on the health of newborns," Journal of Health Economics, Elsevier, vol. 27(4), pages 843-870, July.
When requesting a correction, please mention this item's handle: RePEc:tky:fseres:2008cf602. 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: (CIRJE administrative office)
If references are entirely missing, you can add them using this form.