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
- 396Citations
- 378Captures
- 3Mentions
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Most Recent News
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
http://www.scopus.com/inward/record.url?partnerID=HzOxMe3b&scp=85100187178&origin=inward; http://dx.doi.org/10.1093/qje/qjaa044; https://academic.oup.com/qje/article/136/2/1255/6030033; https://dx.doi.org/10.1093/qje/qjaa044; https://academic.oup.com/qje/article-abstract/136/2/1255/6030033?redirectedFrom=fulltext
Oxford University Press (OUP)
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