Supply-chain impacts of Sichuan earthquake: a case study using disaster input-output analysis

With the development of interregional trade, a potential disaster that happens in one place could cause enormous economic losses in distant areas. Timely and comprehensive post-disaster assessments play a significant role in guiding disaster recovery, and for reconstruction and planning for future disaster risk reduction. In this study, we evaluate the post-disaster economic impacts due to Sichuan earthquake in 2008 and its regional and industrial spillover effects based on a Chinese multi-regional input-output table. The results show that the 2008 Sichuan earthquake caused around 1725 billion US dollars of value-added losses and 69.9 million people of employment losses. The Chemical industry in Guangdong and Zhejiang suffered severe value-added losses due to indirect effects through supply chains. Furthermore, public administration in Henan, Sichuan, and Guangdong suffered large employment losses. In general, we find that the economically less developed provinces are more susceptible to larger losses compared to the economically developed provinces. The results in this study can provide information for decision-makers to devise effective solutions on how to release relief funds and for dividing adaptation plans to avoid serious economic losses due to future disasters.