Zi'ang Wang

Sep 27, 2023 | onlinelibrary.wiley.com | John Birge |Jing Wu |Zi'ang Wang

While global supply chains provide firms with a buffer against local shocks, they expose firms to multi-regional risks. The COVID-19 pandemic and its differential impact on different regions in the world offer an opportunity to explore these effects. We investigate the multi-regional supply chain risk by focusing on credit risk measured by abnormal CDS spreads and US-China supply chain networks. Our evidence shows that local risks propagate through global supply chains to other regions.