Do firms react to supply-chain disruptions?

Juan de Lucio, Carmen Diaz-Mora, Raúl Mínguez, Asier Minondo () and Francisco Requena Silvente
Additional contact information
Raúl Mínguez: Universidad Antonio de Nebrija. Calle de Santa Cruz de Marcenado, 27, 28015, Madrid (Spain)

No 2306, Working Papers from Department of Applied Economics II, Universidad de Valencia

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.

Keywords: supply-chain disruptions; diversification; nearshoring; friendshoring; reshoring; stocks; Spain (search for similar items in EconPapers)
JEL-codes: F10 F14 (search for similar items in EconPapers)
Date: 2023-04
New Economics Papers: this item is included in nep-eec and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Do firms react to supply chain disruptions? (2023)
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