SUPPLY CHAINS IN TIMES OF CRISIS: EVIDENCE FROM KENYA'S PRODUCTION NETWORK

The ongoing pandemic put spotlight on the vulnerability of supply chains and their role for firm dynamics. This project draws on up-to-date administrative firm and transaction level data to study the impact of Covid-19 related shocks on formal firms in Kenya. The data allows the researchers to map Kenya’s formal domestic production network as well as its links to global supply chains before and during the crisis. Researchers use this set-up to quantify the indirect transmission of shocks through inter-firm linkages and the impact on firm-to-firm relationships and firm level dynamics in Kenya. The team further distinguish between the exposure to international and domestic supply chains. Finally, researchers study the relevance of the firm's pre-pandemic network position for firm level outcomes during the pandemic.

Network of formal firms in Kenya

Image description: The graph depict the network of formal firms in Kenya. Each dot represents a firm. Each line a link between two firms. Lighter colours indicate that the firm is linked to more other firms in the network.