Supply Chain Risk and the Pattern of Trade

Thursday, 28 April, 2016
Abstract: 
In this paper, Eber and Malmberg (2015) analyze the interaction of supply chain risk and trade patterns. They show theoretically that countries with low supply chain risk can be expected to specialize in goods with a large number of customized inputs, since those goods are most sensitive to disruption. Then, they test this prediction using industry level trade data and find that countries with low supply chain risk disproportionately export risk-sensitive goods.