Economic Analysis of Regional Renewal and Recovery from the Great East Japan Earthquake

  • Suminori TokunagaEmail author
  • Maria Ikegawa
  • Mitsuru Okiyama
Part of the New Frontiers in Regional Science: Asian Perspectives book series (NFRSASIPER, volume 11)


The Great East Japan Earthquake, which struck on March 11, 2011, had a massive economic impact, primarily on the affected areas in Japan. In this chapter, we examine the economic and human damage inflicted on Iwate, Miyagi, Fukushima, and Ibaraki Prefectures by the Great East Japan Earthquake, as well as the current situation of industrial recovery, based on several statistical sources and a geographically weighted regression (GWR) model. In the latter part of this chapter, we will show the extent of fiscal transfers to date from the government for reconstruction and renewal of stricken areas and analyze the economic effect of the formation of new industrial clusters for reconstruction and renewal on these areas using a static two-regional computable general equilibrium (2SCGE) model. Our findings are as follows: (1) if production subsidies to support industries form new industry clusters, positive effects on regional economies could appear in the disaster regions; however, these impacts are weak and (2) formation of new industry clusters with productivity improvement has a positive effect on real gross regional product (GRP) and economic welfare in these regions, reducing the economic welfare gap between disaster and non-disaster regions.


Great East Japan Earthquake Economic and human damage Geographically weighted regression (GWR) model Two-regional computable general equilibrium (2SCGE) model New economic geography (NEG) model New industry clusters New industrial agglomeration 


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Copyright information

© Springer Nature Singapore Pte Ltd. 2017

Authors and Affiliations

  • Suminori Tokunaga
    • 1
    • 2
    Email author
  • Maria Ikegawa
    • 3
  • Mitsuru Okiyama
    • 4
  1. 1.Faculty of Economics and Business AdministrationReitaku UniversityChibaJapan
  2. 2.University of TsukubaTsukubaJapan
  3. 3.Policy Research Institute, Ministry of Agriculture, Forestry and FisheriesTokyoJapan
  4. 4.Reitaku Institute of Political Economics and Social StudiesReitaku UniversityKashiwa, ChibaJapan

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