The 2011 Tsunami and Adjustment along a Global Production Network : Evidence from Japanese Subsidiaries in South Korea

Description

We exploit the 2011 Japanese natural disaster to investigate the effects of
deep disruptions of Japanese parent firms' production activities on South Ko-
rean subsidiaries' operations. Using a simple D-i-D specification applied to firms
from the KNSO panel database we detail the features of a propagation effect
among South Korean firms. We also find evidence of a diversification of sourcing, sale and employment strategies among South Korean subsidiaries after the 2011 disaster, when the relative use of temporary workers decreased. For South
Korean subsidiary firms with Japanese parents, the 2011 tsunami had a negative
effect on profitability and on liquidity.

Period	4 Apr 2017 - 6 Apr 2017
Held at	The 35th International Labour Process Conference, Reconnecting Work and Political Economy
Event type	Conference
Location	Sheffield, United Kingdom