Economic Activities and Regional Correlation During Economic and Natural Disasters

Jun Nagayasu

MPRA Paper from University Library of Munich, Germany

Abstract: Life is characterized by risks of different features and origins. Examining the economic and natural disasters that have occurred in Japan in the past decades, we show that regional relationships strengthen during chaotic moments, such as the Lehman Brothers collapse, the Great East Japan Earthquake, and the coronavirus disease (COVID-19) pandemic. Moreover, we find that business prospects are a good predictor of labor market conditions, and employment opportunities deteriorate more severely when regions are highly correlated. Our study indicates the side effect of market integration and the relevance of regional economic centers in cushioning nationwide economic and natural shocks.

Keywords: Lehman Brothers collapse; Great East Japan Earthquake; COVID-19; regional heterogeneity; regional correlation (search for similar items in EconPapers)
JEL-codes: R1 (search for similar items in EconPapers)
Date: 2020-07
New Economics Papers: this item is included in nep-ure
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Related works:
Working Paper: Economic Activities and Regional Correlation During Economic and Natural Disasters (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:103084

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