Financial Constraints and Propagation of Shocks in Production Networks

• 成果类型: Article
• 署名作者: Demir, Banu; Javorcik, Beata; Michalski, Tomasz K.; Ors, Evren
• 署名单位: Ihsan Dogramaci Bilkent University; Centre for Economic Policy Research - UK; University of Oxford; Hautes Etudes Commerciales (HEC) Paris
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_01162
• 发表日期: 2024-03
• 页码: 437-454
• 关键词: trade; credit

摘要

We examine the propagation of a small unexpected supply shock through a production network and the role financial constraints play in its transmission. Using data on almost all Turkish supplier-customer links, we exploit the heterogeneous impact of an unexpected import-tax increase for identification. We find that this relatively minor shock had a nontrivial economic impact on exposed firms and propagated downstream through affected suppliers. Importantly, we show that low-liquidity firms amplified its transmission.