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Do firms react to supply-chain disruptions?

Author

Listed:
  • Juan de Lucio

    (Universidad de Alcalá. Pza. San Diego, s/n, 28801, Alcalá de Henares (Spain))

  • Carmen Díaz-Mora

    (Universidad de Castilla-La Mancha, Cobertizo de San Pedro Mártir, s/n, 45071 Toledo (Spain))

  • Raúl Mínguez

    (Universidad Antonio de Nebrija. Calle de Santa Cruz de Marcenado, 27, 28015, Madrid (Spain))

  • Asier Minondo

    (Deusto Business School, University of Deusto, Camino de Mundaiz 50, 20012 Donostia - San Sebastián (Spain))

  • Francisco Requena

    (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain))

Abstract

Since the outbreak of the Covid-19 pandemic, the disruption of supply chains has become a major concern for global firms. This paper uses a representative sample of Spanish manufacturers that participate in global value chains to analyze whether firms are implementing strategies to respond to this concern. Using data for the period 2017-2022, we find that, on average, manufacturers have not increased the number of countries they source their inputs from since the Covid-19 pandemic. Firms have not either shifted their imports to countries that are geographically and geopolitically close to Spain, and have not reshored imports. However, firms have significantly increased the stock of intermediates. Firms only diversify when they have one supplier, export to many destinations, and the imported input has a high risk of experiencing a supply-chain disruption. Firms nearshore and friendshore when their main supplier is geographically distant.

Suggested Citation

  • Juan de Lucio & Carmen Díaz-Mora & Raúl Mínguez & Asier Minondo & Francisco Requena, 2023. "Do firms react to supply-chain disruptions?," Working Papers 2306, Department of Applied Economics II, Universidad de Valencia.
    • Handle: RePEc:eec:wpaper:2306
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    References listed on IDEAS

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    More about this item

    Keywords

    supply-chain disruptions; diversification; nearshoring; friendshoring; reshoring; stocks; Spain;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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