Trade disruptions in Europe: Evidence from the EIB Investment Survey 2022
European Investment Bank
Trade disruptions in Europe: Evidence from the EIB Investment Survey 2022 Andrea Brasili – Peter Harasztosi European Investment Bank 12 May 2023 Abstract Using firm level survey data we draw a portrait of incidence of recent trade related shocks, such as disruptions in logistics or access to materials, and undertaken responses in the economies of the EU. The paper focuses on firm heterogeneity in explaining the willingness to respond to these shocks and in explaining the type of response taken: diversification across trade partners or focusing on domestic markets and suppliers. We find that younger, larger, more productive firms are more likely to respond actively to trade shocks and disruptions, especially with diversification. At the same time, less productive, less innovative firms and firms using imported inputs, but that do not trade themselves are discouraged from engaging directly in international trade.
Number of pages34p.
DescriptionJEL: D21, F1, L23
We would like to thank Christoph Weiss for his useful comments. The views expressed in this paper are those of the authors and do not necessarily reflect the views of the European Investment Bank.
This is a publication of the EIB Economics Department.