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Do Global Value Chains Make Firms More Vulnerable to Trade Shocks?—Evidence from Manufacturing Firms in Sweden

Department of Industrial Economics, Blekinge Institute of Technology, SE-371 79 Karlskrona, Sweden
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J. Risk Financial Manag. 2019, 12(3), 151; https://doi.org/10.3390/jrfm12030151
Received: 7 August 2019 / Revised: 10 September 2019 / Accepted: 12 September 2019 / Published: 18 September 2019
(This article belongs to the Special Issue Analysis of Global Financial Markets)
This paper examines the effect of the Global Financial Crisis on manufacturing firms in Sweden by analyzing the effect of trade exposure on firm performance. This study examines the decline in international trade during the global financial crisis by focusing on the relationship between global production linkages and firm performance. The trade exposure at the firm and industry levels were measured to assess the direct and indirect effects of the crisis on firm performance. Robust evidence was found of a negative relationship between trade exposure and the firms’ sales and value-added growth during the crisis. In addition, it was found that higher export dependence was associated with lower sales growth during the crisis. Our results also show that the effect of the decline in the external demand on firm performance depends on the international input-output linkages. In particular, industries that are upstream in the value chain experienced a less severe decline in performance during the crisis. View Full-Text
Keywords: financial crisis; firm performance; exports; global value chains financial crisis; firm performance; exports; global value chains
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MDPI and ACS Style

Quoreshi, A.M.M.S.; Stone, T.-A. Do Global Value Chains Make Firms More Vulnerable to Trade Shocks?—Evidence from Manufacturing Firms in Sweden. J. Risk Financial Manag. 2019, 12, 151. https://doi.org/10.3390/jrfm12030151

AMA Style

Quoreshi AMMS, Stone T-A. Do Global Value Chains Make Firms More Vulnerable to Trade Shocks?—Evidence from Manufacturing Firms in Sweden. Journal of Risk and Financial Management. 2019; 12(3):151. https://doi.org/10.3390/jrfm12030151

Chicago/Turabian Style

Quoreshi, A. M.M.S.; Stone, Trudy-Ann. 2019. "Do Global Value Chains Make Firms More Vulnerable to Trade Shocks?—Evidence from Manufacturing Firms in Sweden" J. Risk Financial Manag. 12, no. 3: 151. https://doi.org/10.3390/jrfm12030151

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