Global Dual Sourcing: Evidence from Colombian Firms – Victor Gimenez-Perales

Speaker

Victor Gimenez-Perales (Kiel Institut; University of Southern Denmark)

Abstract

This paper examines global dual sourcing, whereby firms source the same product from multiple foreign suppliers, countries, or transport modes to mitigate supply disruptions and trade policy risks. Using transaction-level data covering all Colombian imports from 2008 to 2019, we document that 85% of import value uses some form of global dual sourcing. We develop a theoretical model of dual sourcing and test its predictions using the Panama Canal expansion and anti-dumping duties as exogenous shocks. We find that firms adjust their dual-sourcing strategies in ways consistent with our model following both types of shocks. 

Authors

Victor Gimenez-Perales (Kiel Institut; University of Southern Denmark) – Horst Raff (Kiel University (CAU); CESifo)

Room

Media Room (A-211)