Supply chain disruptions and firm outcomes / Michael Koetter, Huyen Nguyen, Sochima Uzonwanne ; editor: Halle Institute for Economic Research (IWH) - Member of the Leibniz Association
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Discovery
1917169353
URN
urn:nbn:de:gbv:3:2-1125252
DOI
ISBN
ISSN
Autorin / Autor
Beiträger
Körperschaft
Erschienen
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, February 2025
Umfang
1 Online-Ressource (III, 53 Seiten, 1,15 MB) : Diagramme
Ausgabevermerk
Sprache
eng
Anmerkungen
Literaturverzeichnis: Seite 24-28
Inhaltliche Zusammenfassung
This paper examines how firms’ exposure to supply chain disruptions (SCD) affects firm outcomes in the European Union (EU). Exploiting heterogeneous responses to workplace closures imposed by sourcing countries during the pandemic as a shock to SCD, we provide empirical evidence that firms in industries relying more heavily on foreign inputs experience a significant decline in sales compared to other firms. We document that external finance, particularly bank financing, plays a critical role in mitigating the effects of SCD. Furthermore, we highlight the unique importance of bank loans for small and solvent firms. Our findings also indicate that highly diversified firms and those sourcing inputs from less distant partners are less vulnerable to SCD.
Schriftenreihe
IWH-Diskussionspapiere ; 2025, no. 3 (February 2025) ppn:837399270