IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/9774.html
   My bibliography  Save this paper

Floods and Their Impacts on Firms : Evidence from Tanzania

Author

Listed:
  • Maruyama Rentschler,Jun Erik
  • Kim,Ella Jisun
  • Thies,Stephan Fabian
  • De Vries Robbe,Sophie Anne
  • Erman,Alvina Elisabeth
  • Hallegatte,Stephane

Abstract

This study explores how businesses in Tanzania are impacted by floods, and which strategies theyuse to cope and adapt. These insights are based on firm survey data collected in 2018 using a tailoredquestionnaire, covering a sample of more than 800 firms. To assess the impact of disasters on businesses, the studyconsiders direct damages and indirect effects through infrastructure systems, supply chains, and workers. Whiledirect on-site damages from flooding can be substantial, they tend to affect a relatively small share of firms.Indirect impacts of floods are more prevalent and sizable. Flood-induced infrastructure disruptions—especiallyelectricity and transport—obstruct the operations of firms even when they are not directly located in flood zones. Theeffects of such disruptions are further propagated and multiplied along supply chains. The study estimates thatsupply chain multipliers are responsible for 30 to 50 percent of all flood-related delivery delays. To cope withthese impacts, firms apply a variety of strategies. Firms mitigate supply disruptions by adjusting the size andgeographical reach of their supply networks, and by adjusting inventory holdings. By investing in costly backupcapacity (such as water tanks and electricity generators), firms mitigate the impact of infrastructure disruptions. Thestudy estimates that only 13 percent of firms receive government support in the aftermath of floods.

Suggested Citation

  • Maruyama Rentschler,Jun Erik & Kim,Ella Jisun & Thies,Stephan Fabian & De Vries Robbe,Sophie Anne & Erman,Alvina Elisabeth & Hallegatte,Stephane, 2021. "Floods and Their Impacts on Firms : Evidence from Tanzania," Policy Research Working Paper Series 9774, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9774
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/481961631557620454/pdf/Floods-and-Their-Impacts-on-Firms-Evidence-from-Tanzania.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Erman,Alvina Elisabeth & Tariverdi,Mersedeh & Obolensky,Marguerite Anne Beatrice & Chen,Xiaomeng & Vincent,Rose Camille & Malgioglio,Silvia & Maruyama Rentschler,Jun Erik & Hallegatte,Stephane & Yoshi, 2019. "Wading Out the Storm: The Role of Poverty in Exposure, Vulnerability and Resilience to Floods in Dar Es Salaam," Policy Research Working Paper Series 8976, The World Bank.
    2. Yasuyuki Todo & Kentaro Nakajima & Petr Matous, 2015. "How Do Supply Chain Networks Affect The Resilience Of Firms To Natural Disasters? Evidence From The Great East Japan Earthquake," Journal of Regional Science, Wiley Blackwell, vol. 55(2), pages 209-229, March.
    3. Yasuhide Okuyama & Geoffrey J. D. Hewings & Michael Sonis, 2004. "Measuring Economic Impacts of Disasters: Interregional Input-Output Analysis Using Sequential Interindustry Model," Advances in Spatial Science, in: Yasuhide Okuyama & Stephanie E. Chang (ed.), Modeling Spatial and Economic Impacts of Disasters, chapter 5, pages 77-101, Springer.
    4. Stephane Hallegatte, 2019. "Disasters’ impacts on supply chains," Nature Sustainability, Nature, vol. 2(9), pages 791-792, September.
    5. KASHIWAGI Yuzuka & TODO Yasuyuki, 2019. "Propagation of Positive Effects of Post-disaster Policies through Supply Chains: Evidence from the Great East Japan Earthquake," Discussion papers 19030, Research Institute of Economy, Trade and Industry (RIETI).
    6. Kousky, Carolyn, 2014. "Informing climate adaptation: A review of the economic costs of natural disasters," Energy Economics, Elsevier, vol. 46(C), pages 576-592.
    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. Robert Reinhardt, 2022. "Shaking up Foreign Finance: FDI in a Post-Disaster World," Post-Print halshs-03908250, HAL.
    2. Robert Reinhardt, 2022. "Shaking up Foreign Finance: FDI in a Post-Disaster World," Documents de travail du Centre d'Economie de la Sorbonne 22024, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    3. Robert Reinhardt, 2022. "Shaking up Foreign Finance: FDI in a Post-Disaster World," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03908250, HAL.
    4. Robert Reinhardt, 2022. "Shaking up Foreign Finance: FDI in a Post-Disaster World," Working Papers halshs-03908250, HAL.
    5. Robert Reinhardt, 2022. "Shaking up Foreign Finance: FDI in a Post-Disaster World," Documents de travail du Centre d'Economie de la Sorbonne 22024r, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne, revised Sep 2023.

    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. Inoue, Hiroyasu & Todo, Yasuyuki, 2017. "Firm-level simulation of supply chain disruption triggered by actual and predicted earthquakes," MPRA Paper 82920, University Library of Munich, Germany, revised 22 Feb 2017.
    2. INOUE Hiroyasu & OKUMURA Yoshihiro & TORAYASHIKI Tetsuya & TODO Yasuyuki, 2022. "Establishment-level Simulation of Supply Chain Disruption: The case of the Great East Japan Earthquake," Discussion papers 22059, Research Institute of Economy, Trade and Industry (RIETI).
    3. Hallegatte, Stephane, 2014. "Economic resilience: definition and measurement," Policy Research Working Paper Series 6852, The World Bank.
    4. Takano, Keisuke, 2019. "Does visible shock update firms' unrelated trade diversity in anticipation of future shock? Evidence from the Great East Japan Earthquake and expected Nankai Trough Earthquake," TDB-CAREE Discussion Paper Series E-2019-01, Teikoku Databank Center for Advanced Empirical Research on Enterprise and Economy, Graduate School of Economics, Hitotsubashi University.
    5. Kashiwagi , Yuzuka & Todo , Yasuyuki, 2020. "Propagation of Positive Effects of Postdisaster Policies through Supply Chains: Evidence from the Great East Japan Earthquake and Tsunami," ADB Economics Working Paper Series 604, Asian Development Bank.
    6. Céline Grislain-Letrémy & Bertrand Villeneuve, 2019. "Natural disasters, land-use, and insurance," The Geneva Papers on Risk and Insurance Theory, Springer;International Association for the Study of Insurance Economics (The Geneva Association), vol. 44(1), pages 54-86, March.
    7. Matteo Coronese & Davide Luzzati, 2022. "Economic impacts of natural hazards and complexity science: a critical review," LEM Papers Series 2022/13, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    8. Bachev, Hrabrin & Ito, Fusao, 2017. "Agricultural impacts of the Great East Japan Earthquake - six years later," MPRA Paper 79469, University Library of Munich, Germany.
    9. Franziska Piontek & Matthias Kalkuhl & Elmar Kriegler & Anselm Schultes & Marian Leimbach & Ottmar Edenhofer & Nico Bauer, 2019. "Economic Growth Effects of Alternative Climate Change Impact Channels in Economic Modeling," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(4), pages 1357-1385, August.
    10. Frijters, Paul & Johnston, David W. & Knott, Rachel & Torgler, Benno, 2021. "Resilience to Disaster: Evidence from Daily Wellbeing Data," IZA Discussion Papers 14220, Institute of Labor Economics (IZA).
    11. Qin Fan & Meri Davlasheridze, 2019. "Economic Impacts Of Migration And Brain Drain After Major Catastrophe: The Case Of Hurricane Katrina," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 1-21, February.
    12. Emmanuel Apergis & Nicholas Apergis, 2021. "The impact of COVID-19 on economic growth: evidence from a Bayesian Panel Vector Autoregressive (BPVAR) model," Applied Economics, Taylor & Francis Journals, vol. 53(58), pages 6739-6751, December.
    13. Stéphane Hallegatte, 2014. "Modeling the Role of Inventories and Heterogeneity in the Assessment of the Economic Costs of Natural Disasters," Risk Analysis, John Wiley & Sons, vol. 34(1), pages 152-167, January.
    14. Hayato Kato & Toshihiro Okubo, 2022. "The Resilience of FDI to Natural Disasters Through Industrial Linkages," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(1), pages 177-225, May.
    15. Davlasheridze, Meri & Fisher-Vanden, Karen & Allen Klaiber, H., 2017. "The effects of adaptation measures on hurricane induced property losses: Which FEMA investments have the highest returns?," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 93-114.
    16. Peter Tangney & Claire Nettle & Beverley Clarke & Joshua Newman & Cassandra Star, 2021. "Climate security in the Indo-Pacific: a systematic review of governance challenges for enhancing regional climate resilience," Climatic Change, Springer, vol. 167(3), pages 1-30, August.
    17. Iman Rahimi Aloughareh & Mohsen Ghafory Ashtiany & Kiarash Nasserasadi, 2016. "An Integrated Methodology For Regional Macroeconomic Loss Estimation Of Earthquake: A Case Study Of Tehran," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-24, September.
    18. Liu, Huan & Tatano, Hirokazu & Pflug, Georg & Hochrainer-Stigler, Stefan, 2021. "Post-disaster recovery in industrial sectors: A Markov process analysis of multiple lifeline disruptions," Reliability Engineering and System Safety, Elsevier, vol. 206(C).
    19. Michal FABINGER & SHIBUYA Yoko & TANIGUCHI Mina, 2017. "International Influences on Japanese Supply Chains," Discussion papers 17022, Research Institute of Economy, Trade and Industry (RIETI).
    20. Stanislav Shmelev & Harrison Roger Brook, 2021. "Macro Sustainability across Countries: Key Sector Environmentally Extended Input-Output Analysis," Sustainability, MDPI, vol. 13(21), pages 1-46, October.

    More about this item

    Keywords

    Natural Disasters; Transport Services; Hydrology; Hazard Risk Management; Social Risk Management; Disaster Management; Energy Policies & Economics;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:wbk:wbrwps:9774. 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: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.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.