Supply Chain Disruptions, Supplier Capital, and Financial Constraints *

We study the impact of supply chain disruptions on U.S. firms based on the universe of seaborne shipment-level import transactions from 2013 to 2023. The granularity of the data allows us to build an index of firm-level disruptions of international suppliers and introduce a comprehensive set of stylized facts for supply chain relationships in the cross-section of firms. We build a general equilibrium heterogeneous firms model with two types of capital stocks-physical and international supplier capitals. Accumulation of supplier capital is an important endogenous margin of adjustment, and limiting this ability substantially delays recovery, especially in financially constrained firms.

Keywords: Supply chain disruptions, Supplier capital, Investment, Firm dynamics

Suggested Citation: Suggested Citation

Liu, Ernest and Liu, Yukun and Smirnyagin, Vladimir and Tsyvinski, Aleh and Tsyvinski, Aleh, Supply Chain Disruptions, Supplier Capital, and Financial Constraints * (January 15, 2025). Available at SSRN: https://ssrn.com/abstract=4866869 or http://dx.doi.org/10.2139/ssrn.4866869