Unreliable firms: Evidence from Rwanda

Abstract

This paper measures reliability – whether firms execute transactions on-schedule – for the universe of Rwandan formal firms using transaction timing data and describes the characteristics of reliable firms. Reliable firms have larger interfirm sales, export more, supply exporters and multinationals, and transact with other reliable firms. Reliable firms are less sensitive to supply chain disruptions. Supplying an MNC increases seller reliability even when servicing non-MNC buyers.