Recovery of the Supply Chain after the 2011 Mega-quake in Japan

The 2011 mega-quake in East Japan seriously affected Japanese manufacturers in the Tohoku region. Disaster-hit firms shutdown their operation for a long period after the quake. This article examines what factors prolonged the recovery of plants, using Research Institute for Economy, Trade and Industry’s (RIETI) survey of affected plants in the Tohoku area. Our study reveals that not only the loss of infrastructure, such as, electricity, water and transport, but also the collapse of the supply chain caused a nationwide fall in production and the breakdown of the supply chain extended the recovery period for plants even after the restoration of electricity, the industrial water supply and the transport network. Our study concludes that disaster-hit firms suffer for a longer period and can adversely affect firms untouched by disaster, if the recovery of the supply chain is delayed.Manufacturing; supply chain; quake; recovery; quantile regressio