Supply Chain Resilience: Evidence from Indian Firms

Gaurav Khanna, Nicolas Morales and Nitya Pandalai-Nayar

No 30689, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We characterize what features make supply chains more resilient. Using new data on the universe of firm-to-firm transactions from an Indian state, we identify firms with larger supplier exposure following the Covid-19 lockdowns. Using an event-study design we find firms with suppliers in strict-lockdown districts experienced higher separation rates and larger declines in inputs and sales. We study which characteristics increase supply-chain resilience. Firms that buy more complex products, with fewer available suppliers, are less likely to break links and face lower production disruptions. We explore how firms change post-shock supplier composition. Firms with higher supplier exposure form new links with larger and better-connected suppliers.

JEL-codes: F14 L14 (search for similar items in EconPapers)
Date: 2022-11
New Economics Papers: this item is included in nep-bec and nep-ind
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Citations: View citations in EconPapers (8)

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