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Supply chain disruptions: Evidence from the great east japan earthquake

Quarterly Journal of Economics, ISSN: 1531-4650, Vol: 136, Issue: 2, Page: 1255-1321
2021
  • 396
    Citations
  • 0
    Usage
  • 378
    Captures
  • 3
    Mentions
  • 79
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    396
    • Citation Indexes
      236
    • Policy Citations
      160
      • Policy Citation
        160
  • Captures
    378
  • Mentions
    3
    • References
      2
      • Wikipedia
        2
    • News Mentions
      1
      • News
        1
  • Social Media
    79
    • Shares, Likes & Comments
      79
      • Facebook
        79

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Issue Brief: Supply Chain Resilience

Economic shocks caused by the Covid-19 pandemic severely disrupted global supply chains. At the same time, Covid-related shutdowns rapidly rotated consumer demand towards goods and

Review Description

Exploiting the exogenous and regional nature of the Great East Japan Earthquake of 2011, this article provides a quantification of the role of input-output linkages as a mechanism for the propagation and amplification of shocks. We document that the disruption caused by the disaster propagated upstream and downstream along supply chains, affecting the direct and indirect suppliers and customers of disaster-stricken firms. Using a general equilibrium model of production networks, we then obtain an estimate for the overall macroeconomic impact of the disaster by taking these propagation effects into account. We find that the earthquake and its aftermaths resulted in a 0.47 percentage point decline in Japan's real GDP growth in the year following the disaster.

Bibliographic Details

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