Small Seminar: The Tohoku Earthquake and Its Impact on Firms' Financial Constraints | Asian Development Bank

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Small Seminar: The Tohoku Earthquake and Its Impact on Firms' Financial Constraints

Event | 23 July 2018 ADBI, Tokyo, Japan
Speaker Details

Speaker: Iichiro Uesugi
Affiliation: Hitotsubashi University
Time: 12:00–13:00

Background

Iichiro Uesugi will examine and compare the collateral and the bank lending channels. He identifies exogenous shocks to firms’ tangible assets and banks’ net worth caused by the massive Tohoku earthquake in 2011. He found that (1) damage to a firm’s tangible assets and to the net worth of its primary banks led to a deterioration in the firm’s credit availability, providing evidence of the existence of both the collateral and the bank lending channels; (2) firms that faced a tighter credit constraint after the earthquake reduced the amount of borrowing outstanding and saw a fall in the level of production and sales activities; (3) in aggregate, the damage caused by the earthquake and transmitted through the collateral and bank lending channels substantially decreased output in the region; and (4) some of the financial support measures such as investment subsidies and earthquake insurance payouts alleviated the negative impact.

About the Speaker

Iichiro Uesugi is a professor at the Institute of Economic Research of Hitotsubashi University, Japan. Before joining Hitotsubashi University in 2011, he worked at the Ministry of Economy, Trade and Industry (METI) and served in the Economic Policy Unit of the Minister's Secretariat, Macroeconomic Affairs Division; the Planning Division of the Coal Department in the Agency of Natural Resources and Energy; the Research Division of the Small and Medium Enterprises Agency; and the Research Institute of Economy, Trade and Industry. His research interests are financial intermediation, small and medium-sized enterprises, and Japan’s economy. His research has been published in scholarly journals, including International Economic Review, Journal of Economic Behavior and Organization, Journal of Money, Credit, and Banking, Journal of Banking & Finance, and Journal of the Japanese and International Economies. He received his PhD in economics in 2000 from the University of California, San Diego.

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