We quantify and explain the firm responses and worker impacts of foreign demand shocks to domestic production networks. To capture that firms can be indirectly exposed to such shocks by buying from or selling to domestic firms that import or export, we use Belgian data with information on both domestic firm-to-firm sales and foreign trade transactions. Our estimates of firm responses suggest that Belgian firms pass on a large share of a foreign demand shock to their domestic suppl…
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NBB Working Paper, 2022, 412: Foreign demand shocks to production networks: Firm responses and worker impacts
Oorspronkelijke titel: Foreign demand shocks to production networks: Firm responses and worker impacts
Bron: nbb.be
06-09-2022
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