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Supply Chain Resilience: Evidence from Indian Firms, Working Paper 22-11

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Supply Chain Resilience: Evidence from Indian Firms, Working Paper 22-11

DATE: December 17, 2022

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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 risk following the Covid-19 lockdowns. Using an event-study design we find firms with suppliers in strict-lockdown districts experienced 4.5pp higher separation rates (a 15% increase relative to baseline). We study which characteristics increase supply-chain resilience. Firms that buy more complex products, with fewer available suppliers, are less likely to break links. We explore how firms change post-shock supplier composition. Firms with higher supplier risk form new links with larger and better-connected suppliers.

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Khanna, Gaurav , Morales, Nicolas and Pandalai-Nayar, Nitya. "Supply Chain Resilience: Evidence from Indian Firms, Working Paper 22-11," Working Papers (Federal Reserve Bank of Richmond) (December 17, 2022). https://fraser.stlouisfed.org/title/3942/item/627840, accessed on November 29, 2023.

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DIGITAL COPY SOURCE: Federal Reserve Bank of Richmond

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  • doi: https://doi.org/10.21144/wp22-11
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