Propagation of Positive Effects of Post‐disaster Policies Through Supply Chains

Abstract

This study evaluates the impact of “group subsidies,” a policy intervention intended to repair and reinstall damaged capital goods and facilities of small‐ and medium‐sized enterprises after the Great East Japan earthquake. Employing a propensity‐score‐matching and difference‐in‐differences approach, we find a positive effect of the subsidies on post‐disaster sales and employment of small recipient firms. We also find a positive indirect effect of group subsidies on firms in disaster‐hit prefectures that did not receive any group subsidy but were linked through supply chains with a recipient firm. Our results indicate the propagation of post‐disaster policy effects through supply chains. (JEL H20, L14, Q54)

Climate Disaster Losses and Foreign Exchange Reserve Dynamics: Evidence of East Asia Pacific

“…First, most of the existing studies regard FERs as a policy tool to resist financial shocks and seldom consider the impact of external shocks such as CDLs on FERs. Climate disasters have profoundly affected the development and policy formulation of many countries [34]. Thus, this issue should not be ignored.…”