Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/310348 
Year of Publication: 
2024
Series/Report no.: 
NBB Working Paper No. 466
Publisher: 
National Bank of Belgium, Brussels
Abstract: 
This paper estimates how the impact of a natural disaster propagates through the production network. More precisely, we look at the excessive rainfall in the summer of 2021 that caused large areas to be severely flooded in Belgium. We first look at the direct effects on firms active in the flooded areas and find substantial negative effects on sales and employment. Next, we investigate how these shocks propagate through the network, thereby differentiating explicitly between upstream and downstream linkages. Our results show that the floods had a strong negative impact on the performance of firms active in the area. In terms of the supply chain effects, we find negative and persistent effects on sales for firms with upstream exposure.
Subjects: 
Flooding
climate change
firms
production network
JEL: 
D57
L25
Q54
R11
L14
Document Type: 
Working Paper

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