The Japanese textile sector and the influenza pandemic of 1918–1920

Abstract

AbstractThe ongoing global pandemic has brought into sharp relief the possible interactions between the epidemiology of a virus, the structure of the economy and society that becomes exposed to it, and the actions chosen by government, individuals, and communities to combat it or ameliorate its economic impact. Surprisingly, there has not been sufficient research on these economic and policy interactions of the 1918–1920 influenza pandemic—the deadliest pandemic of the 20th century. This paper focuses on Japan, which as a minor participant of and was not directly affected by World War I. We exploit the diversity of experiences with the pandemic and its attendant policy responses across Japanese prefectures; and investigate the importance of the pandemic's toll (measured by excess mortality), and of nonpharmaceutical policy interventions (NPIs), in determining the pandemic's economic impact. We do so by focusing on the production and employment in the textile sector, given the availability of data and the general importance of the textile sector for emerging economies (as Japan was at the time). We find a significant adverse impact of the pandemic on textiles (almost 30% for an average prefectural excess mortality shock) and indeed find that the implemented NPIs were effective in ameliorating around one half of the pandemic's adverse economic consequences, especially for textile output (rather than employment). Furthermore, these NPIs were more effective when the excess mortality was higher. In this case, there was no trade‐off between money and life, but rather the two were complimentary.