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Firm-level impacts of natural disasters on production networks: evidence from a flood in Thailand

Kazunobu Hayakawa (), Toshiyuki Matsuura () and Okubo Fumihiro

No 445, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: In this paper, we explore the firm-level impacts of flooding in Thailand in 2011, specifically those on the procurement patterns at Japanese affiliates in Thailand. Our findings are as follow. First, the damaged small firms are more likely to lower their local procurement share, particularly the share of procurement from other Japanese-owned firms in Thailand. Second, damaged young firms and damaged old firms are more likely to raise the shares of imports from Japan and China, respectively. Third, there are no impacts on imports from ASEAN and other countries. These findings are useful for uncovering how multinational firms adjust their production networks before and after natural disasters.

Keywords: Thailand; Japan; Foreign affiliated firm; International business enterprises; Industrial management; Risk management; Flood damage; Disasters; Natural disasters; Flooding; Production networks (search for similar items in EconPapers)
JEL-codes: F23 Q54 D22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-rmg and nep-sea
Date: 2014-02-01
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 445. 2014-02-01

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Journal Article: Firm-level impacts of natural disasters on production networks: Evidence from a flood in Thailand (2015) Downloads
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