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on International Activities of Firms |
| By: | Pierluigi Murro; Valentina Peruzzi |
| Abstract: | This paper examines whether judicial enforcement shapes firms' participation in global value chains (GVCs). Exploiting Italy's 2013 court reorganization as a natural experiment, we combine firm-level survey data with administrative records and implement a spatial discontinuity IV design. We find that longer trials significantly reduce the probability of GVC participation: even delays of just a few weeks in civil proceedings translate into sizeable declines, underscoring the economic value of timely enforcement. The effect is concentrated among downstream firms and in trade with advanced markets, and operates through external finance, product complexity, and firm opacity. |
| Keywords: | Global value chains, Judicial enforcement, Regional development, Product complexity |
| JEL: | F10 F61 K41 R11 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ter:wpaper:00190 |
| By: | Stelios Giannoulakis; Angelos Kanas; Marina-Eliza Spaliara; John Tsoukalas |
| Abstract: | We examine the effects of the 2018-2019 U.S. tariffs on Greek goods exports using industry- and firm-level data within a difference-in-differences framework. The results reveal considerable heterogeneity: eight out of seventeen products experienced declines in exports, six saw increases, and the rest showed no significant change. Firm-level analysis confirms part of this heterogeneity. While many export-oriented firms were resilient, some in specific industries experienced either export and sales declines or gains. A notable case is the aluminum sector, where firms experienced substantial increases in exports, pointing to potential sector-specific advantages. We also find modest evidence of export market substitution as a mitigating strategy. Our findings highlight the nuanced, sector-dependent effects of trade policy shifts. Policymakers should design support for affected firms through targeted trade promotion, market diversification incentives, and streamlined export procedures to enhance resilience against trade shocks. |
| Keywords: | U.S. tariffs, Greek exports, Difference-in-Difference, export market substitution, export support schemes |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:hel:greese:215 |
| By: | Megumi NAOI; Banri ITO; Naoto JINJI |
| Abstract: | Rising geopolitical tensions have led governments to restrict trade and investment under economic security justifications. While these restrictions are costly for firms, opposition to protectionism is not universal among them. Why? We demonstrate a demand-side mechanism in which geopolitical tensions increase global firms’ demand for government restrictions to coordinate and facilitate collective adjustment of supply chains. We predict that firms facing higher supply chain coordination costs are more likely to support restrictive economic security policies and test this prediction using an original survey of Japanese manufacturing firms merged with confidential microdata documenting supply chains. The results suggest that firms with deeper integration into global supply chains are more likely to support government restrictions, especially among firms with overseas contract manufacturing and a high number of affiliates in China. Global firms may demand government intervention due to the social costs of supply chain adjustments. |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:26049 |
| By: | Gabor Bekes; Matyas Molnar; Claudia Steinwender |
| Abstract: | Search and matching frictions prevent firms from forming international trade linkages. Despite trade fairs being a common and often subsidized tool to overcome these frictions, we lack causal evidence on how they facilitate link formation. We exploit a unique feature of Hungarian firms' participation in the 1900 Paris World Exhibition, where a trial exhibition revealed firms' ex-ante export potential category to develop a novel bounding strategy that compares treated firms to control groups from "above" and "below" in export potential. To implement our empirical strategy, we constructed a novel panel dataset of approximately 3, 600 Hungarian manufacturing firms for the 1896-1906 period by digitizing, parsing and linking over 12, 000 records across eleven historical sources, including exhibition catalogs, government surveys, commercial directories, official gazettes and patenting directories. We find that participation increases export probability by 4-10 percentage points, patenting probability by 4-6 percentage points and employment by 16-23% over eight years. Effects are larger when firms face fewer domestic competitors and more potential international buyers. This highlights both matching benefits and congestion effects when search and matching frictions are reduced. |
| Keywords: | buyer-supplier links, export promotion, trade fairs, search frictions, industrial policy, economic history |
| Date: | 2026–06–10 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2192 |