Pandemic disruptions in global supply chains: Evidence on trade values and prices from French firms

Abstract

This paper examines how firms responded to the disruptions caused by the global supply chain (GSC) shocks induced by the COVID-19 pandemic. Leveraging firm-level trade data from France, we analyze shifts in export and import values and prices in response to transportation bottlenecks and pandemic containment measures in partner countries. Our findings reveal that firms adapted to these shocks by temporarily scaling back trade volumes and dropping varieties. During the recovery phase, supply chain bottlenecks stoked price hikes, disproportionately affecting upstream industries. Furthermore, we demonstrate that firms using industrial robots in production and those with prudent inventory management practices were more resilient to the pandemic shock.