The Resilience of FDI to Natural Disasters through Industrial Linkages

  title={The Resilience of FDI to Natural Disasters through Industrial Linkages},
  author={Hayato Kato and Toshihiro Okubo},
  journal={PSN: Natural Disasters (Topic)},
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… 


The Impact of a Natural Disaster on Foreign Direct Investment and Vertical Linkages
How do multinational enterprises (MNEs) affect the host country through their vertical industrial linkages when large natural disasters occur? To answer this question, we develop a simple theoretical
Natural Disasters, FDI and Intra-National Spillovers: Evidence from India
This paper examines the effects of natural disasters on FDI, considering the case of India. Our analysis evidences persistent investment reductions in affected regions following a disaster as well as
How Do Supply Chain Networks Affect the Resilience of Firms to Natural Disasters? Evidence from the Great East Japan Earthquake
type="main"> This paper uses firm-level data to examine how supply chain networks affected the recovery of firms from the Great East Japan Earthquake. Extensive supply chains can negatively affect
Natural Disasters and Foreign Direct Investment
The world’s population has witnessed the concurrence of two powerful global trends: an unprecedented growth in foreign direct investment (FDI) and an increase in natural disasters. Since investment
Trade Networks and Natural Disasters: Diversion, not Destruction
We study how international trade networks react to natural disasters. We combine exhaustive firm-to-firm trade credit and disaster data and use a dynamic differences-indifferences identification
Natural Disasters and Firms in Vietnam
This paper investigates the consequences of natural disasters on firms in Vietnam over the period 2000 to 2008. We examine the impacts of natural disasters on firm investment and retail sales. We
Multinationals' response to major disasters: how does subsidiary investment vary in response to the type of disaster and the quality of country governance?
We investigate the response of multinational corporations (MNCs) to major disasters at the subsidiary level. We examine the type and severity of the disaster and whether and how country governance