Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/241285 
Year of Publication: 
2021
Series/Report no.: 
WTO Staff Working Paper No. ERSD-2021-13
Publisher: 
World Trade Organization (WTO), Geneva
Abstract: 
This paper uses Chinese firm level data to detect the international propagation of adverse shocks triggered by the US hurricane season in 2005. We provide evidence that Chinese processing manufacturers with tight trade linkages to the United States reduced their intermediate imports from the United States between July and October 2005. We further show that the direct exposure to US supply shocks led to a temporary decline of firm exports between September and November 2005, although we do not find consistent evidence of international propagation of supply shocks along global value chains. Moreover, the paper finds that firms with more diversified suppliers tend to be less affected by the US hurricane disaster, pointing to firm sourcing diversification as a way to increase resilience to adverse shocks.
Subjects: 
production networks
resilience
diversification
shock transmission
supply chains
natural disasters
JEL: 
F12
F14
F15
F61
D5
L14
E23
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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