The Resilience of FDI to Natural Disasters through Industrial Linkages

Kato, Hayato; Okubo, Toshihiro

Discussion Papers In Economics And Business, 2021, 21-06, 1-54

Number of Access:445（2025-09-04 08:33 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/81850

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Title
The Resilience of FDI to Natural Disasters through Industrial Linkages
Creator
NRID
1000030837703 1000030837703
ORCID
0000-0002-2063-8453 0000-0002-2063-8453
researchmap permalink
30837703 30837703
Scopus Author ID
57200115385 57200115385
CreatorName
Kato, Hayato
NRID
1000080510255 1000080510255
CreatorName
Okubo, Toshihiro
Subject
Foreign direct investment (FDI)
Multinational enterprises (MNEs)
Input-output linkages
Supply chain disruptions
Multiple equilibria
Abstract
When do multinationals show resilience during natural disasters? To answer this, we develop a simple model in which 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 intermediates, 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 importing foreign intermediates. We further provide two extensions of the basic model to allow for multinationals with heterogeneous productivity and disaster reconstruction.
Publisher
Graduate School of Economics, Osaka University
Source Title
Discussion Papers In Economics And Business
Volume (Issue)
21-06
Page
1-54
Date of Issued
2021-06
Language
English
Handle URL
https://hdl.handle.net/11094/81850
NCID
AA1160366X
Relation.references
URI
http://www2.econ.osaka-u.ac.jp/econ_society/dp/2106.pdf
Access Rights
metadata only access
Category
ディスカッション／ワーキング・ペーパー DP/WP
Discussion Papers In Economics And Business