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Supply Chain Disruptions, Supplier Capital, and Financial Constraints

Author

Listed:
  • Ernest Liu

    (Princeton University)

  • Yukun Liu

    (Rochester University)

  • Vladimir Smirnyagin

    (University of Virginia)

  • Aleh Tsyvinski

    (Yale University)

Abstract

We study the impact of supply chain disruptions on U.S. firms based on the universe of seaborne shipment-level import transactions from 2013 to 2023. The granularity of the data allows us to build an index of firm-level disruptions of international suppliers and introduce a comprehensive set of stylized facts for supply chain relationships in the cross-section of firms. We build a general equilibrium heterogeneous firms model with two types of capital stocksÑphysical and international supplier capitals. Accumulation of supplier capital is an important endogenous margin of adjustment, and limiting this ability substantially delays recovery, especially in financially constrained firms.

Suggested Citation

  • Ernest Liu & Yukun Liu & Vladimir Smirnyagin & Aleh Tsyvinski, 2024. "Supply Chain Disruptions, Supplier Capital, and Financial Constraints," Cowles Foundation Discussion Papers 2402R1, Cowles Foundation for Research in Economics, Yale University.
    • Handle: RePEc:cwl:cwldpp:2402r1
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    File URL: https://cowles.yale.edu/sites/default/files/2025-04/d2402r1.pdf
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    References listed on IDEAS

    as
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    2. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
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    5. Neumeyer, Pablo A. & Perri, Fabrizio, 2005. "Business cycles in emerging economies: the role of interest rates," Journal of Monetary Economics, Elsevier, vol. 52(2), pages 345-380, March.
    6. Steven N. Kaplan & Luigi Zingales, 1997. "Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 169-215.
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    Cited by:

    1. Elliott, M. & Jackson, M. O., 2024. "Supply Chain Disruptions, the Structure of Production Networks, and the Impact of Globalization," Cambridge Working Papers in Economics 2424, Faculty of Economics, University of Cambridge.
    2. Carter, Mary Ellen & Lee, Lian Fen & Yu, Enshuai, 2026. "Real effects of proposed scope 3 disclosures," Journal of Accounting and Economics, Elsevier, vol. 81(1).

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