Links with East Asia for a recovery from the Great East Japan Earthquake: Geographical Simulation Analysis

Ikumo Isono and Fukunari Kimura

No PB-2011-03, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: Japan is now struggling for a recovery from the devastating earthquake and tsunami of March 11, 2011. Although trunk logistic infrastructure has quickly been restored, some local infrastructure is likely to take a longer time to re-establish. The theory of new economic geography suggests that temporary interruption of infrastructure services may generate long-term negative effects on the Tohoku region and Japan as a whole because some of the economic activities may move away. We argue that strengthening links with East Asia is a key supplementary policy for achieving a full economic recovery. Our Geographical Simulation Model assesses economic effects of several policy scenarios.

Pages: 12 pages.
Date: 2011-08-01
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