TY - JOUR
T1 - Firm-level impacts of natural disasters on production networks
T2 - Evidence from a flood in Thailand
AU - Hayakawa, Kazunobu
AU - Matsuura, Toshiyuki
AU - Okubo, Fumihiro
N1 - Funding Information:
This research was conducted as part of a project of the Institute of Developing Economies called “Comprehensive Analysis on Consequence of Trade and Investment Liberalization in East Asia.” We are grateful to Isamu Wakamatsu for providing us with the micro data used in this study. We also thank two anonymous referees, Taiyo Yoshimi, Daisuke Miyakawa, and the participants at the Spring Meeting of Japanese Economic Association in 2014 for their valuable comments. The opinions expressed in this paper are those of the authors and do not represent the views of any of the institutions with which we are affiliated. This work was also supported by JSPS KAKENHI Grant Numbers 26220503 and 26285058 .
Publisher Copyright:
© 2015 Elsevier Inc.
PY - 2015/12/1
Y1 - 2015/12/1
N2 - This paper explores the firm-level impact of the 2011 flooding in Thailand, specifically, the impact on procurement patterns at Japanese affiliates in Thailand. We find that, first, small firms are more likely to lower their local procurement share, especially their share of procurement from other Japanese-owned firms in Thailand. Second, young firms are more likely to increase their share of imports from Japan, whereas old firms are more likely to look to China. Third, there is no impact on imports from ASEAN and other countries. These findings are useful for uncovering how multinationals adjust their production networks before and after natural disasters.
AB - This paper explores the firm-level impact of the 2011 flooding in Thailand, specifically, the impact on procurement patterns at Japanese affiliates in Thailand. We find that, first, small firms are more likely to lower their local procurement share, especially their share of procurement from other Japanese-owned firms in Thailand. Second, young firms are more likely to increase their share of imports from Japan, whereas old firms are more likely to look to China. Third, there is no impact on imports from ASEAN and other countries. These findings are useful for uncovering how multinationals adjust their production networks before and after natural disasters.
KW - Flooding
KW - Multinational enterprises
KW - Natural disasters
KW - Production networks
KW - Thailand
UR - http://www.scopus.com/inward/record.url?scp=84944051151&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84944051151&partnerID=8YFLogxK
U2 - 10.1016/j.jjie.2015.10.001
DO - 10.1016/j.jjie.2015.10.001
M3 - Article
AN - SCOPUS:84944051151
SN - 0889-1583
VL - 38
SP - 244
EP - 259
JO - Journal of The Japanese and International Economies
JF - Journal of The Japanese and International Economies
ER -