Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/230359
Authors: 
Kashiwagi, Yuzuka
Todo, Yasuyuki
Year of Publication: 
2020
Series/Report no.: 
ADB Economics Working Paper Series No. 604
Abstract: 
This study evaluates the impact of "group subsidies," a policy intervention to repair and reinstall damaged capital goods and facilities of small and medium-sized enterprises after the Great East Japan earthquake and tsunami. In addition to their direct effect on firms that received the subsidies, we estimate their indirect effect on firms that did not receive the subsidies but were linked with recipient firms through supply chains. Employing a propensity score matching and analysis of variance approach, we find a positive effect of the subsidies on small recipient firms' postdisaster sales and employment. We also find a positive indirect effect of the 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 postdisaster policy effects through supply chains, which are often ignored in the academic literature and the policymaking arena.
Subjects: 
natural disasters
postdisaster policy
propagation
supply chains
JEL: 
H20
L14
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/3.0/igo/
Document Type: 
Working Paper

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