Geographical spread of interfirm transaction networks and the great east Japan earthquake

Research output: Chapter in Book/Report/Conference proceedingChapter

3 Citations (Scopus)

Abstract

This chapter examines how the impact of the Great East Japan Earthquake spread geographically to unaffected areas through interfirm transaction networks. Previous studies on transaction networks revealed small-world structure and geographical proximity, which have conflicting implications for the geographical impact of the earthquake. Using interfirm transaction data from approximately 800,000 firms, it is examined how firms in physically unaffected areas are linked with those in the affected areas. It is found that only 3 % of firms in unaffected areas have direct transaction links with those in the affected areas. On the other hand, the share increases to 40–60 % if indirectly linked transaction partners (i.e. partners of partners) are taken into account. Further, it is shown that it is a small number hub firms with interfirm links spanning larger distances that are responsible for linking more local networks in different regions and hence for geographically spreading the economic impact of the earthquake.

Original languageEnglish
Title of host publicationAdvances in Japanese Business and Economics
PublisherSpringer
Pages157-173
Number of pages17
DOIs
Publication statusPublished - 2015
Externally publishedYes

Publication series

NameAdvances in Japanese Business and Economics
Volume4
ISSN (Print)2197-8859
ISSN (Electronic)2197-8867

Keywords

  • Earthquake
  • Geographical proximity
  • Interfirm networks

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Economics and Econometrics
  • Finance

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  • Cite this

    Saito, Y. U. (2015). Geographical spread of interfirm transaction networks and the great east Japan earthquake. In Advances in Japanese Business and Economics (pp. 157-173). (Advances in Japanese Business and Economics; Vol. 4). Springer. https://doi.org/10.1007/978-4-431-55390-8_8