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WTO Working Papers

WTO working papers usually represent research in progress. Such research may be conducted in the preparation of WTO Secretariat reports, studies or other material for WTO members. The papers are circulated for comment because the WTO considers critical review of professional research to be extremely important.

English

Assessing the Supply Chain Effect of Natural Disasters

Evidence from Chinese Manufacturers

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.

English

Keywords: shock transmission, production networks, diversification, resilience, supply chains, natural disasters
JEL: F12: International Economics / Trade / Models of Trade with Imperfect Competition and Scale Economies; Fragmentation; F14: International Economics / Trade / Empirical Studies of Trade; F15: International Economics / Trade / Economic Integration; F61: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Microeconomic Impacts; E23: Macroeconomics and Monetary Economics / Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy / Macroeconomics: Production; L14: Industrial Organization / Market Structure, Firm Strategy, and Market Performance / Transactional Relationships; Contracts and Reputation; Networks
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