The Resilience of FDI to Natural Disasters through Industrial Linkages

@article{Kato2021TheRO,
  title={The Resilience of FDI to Natural Disasters through Industrial Linkages},
  author={Hayato Kato and Toshihiro Okubo},
  journal={PSN: Natural Disasters (Topic)},
  year={2021}
}
When do multinationals show resilience during natural disasters? To answer this, we develop a simple model in which foreign multinationals and local firms in the host country are interacted through input-output linkages. When natural disasters seriously hit local firms and thus increase the cost of sourcing local intermediate inputs, most multinationals may leave the host country. However, they are likely to stay if they are tightly linked with local suppliers and face low trade costs of… 

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