By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.
We study features that supply-chains more resilient. Using new data on firm-to-firm transactions from an Indian state, we construct a firm-specific measure of upstream exposure to Covid-19 lockdowns based on pre-period purchases from affected suppliers. An event-study design shows firms with greater upstream exposure experienced higher separation rates and larger declines in real inputs and sales. However, for a given increase in upstream exposure, firms sourcing more complex inputs or inputs with fewer alternative suppliers were less likely to sever links and faced smaller production disruptions. After the shock, exposed firms adjusted, forming new links with larger, better-connected suppliers.
