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Postdisaster Subsidies for Small and Medium Firms: Insights for Effective Targeting

Publication | October 2019
Postdisaster Subsidies for Small and Medium Firms: Insights for Effective Targeting

This paper explores the effect of postdisaster capital subsidies on the recovery of small and medium-sized enterprises (SMEs) and how policymakers could target public support to them more effectively.

The paper examines the effects of the subsidies the government provided for SMEs after the Great East Japan Earthquake of 2011. It finds that these were effective in the retail sector but made no significant difference in the manufacturing and other service sectors. The results suggest that this difference arose from variations in the degree of private support across sectors rather than from variations in supply chain disruption.

Contents 

  • Introduction
  • Background
  • Data
  • Estimation Strategy
  • Results
  • Conclusion