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{HtmlEncodeMultiline(EmailPreheader)} | TO COMPLY OR NOT TO COMPLY: UNDERSTANDING NEUTRAL COUNTRY SUPPLY CHAIN RESPONSES TO RUSSIAN SANCTIONS |
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| ABSTRACT We study how firms in neutral countries adjusted supply chains to Western sanctions on Russia. Firms with headquarters in sanctioning countries (sanctioning MNEs) reduced sanctioned product exportsto Russia, showing MNEs’ global influence. However, domestic firms in neutral countries increased sanctioned exports, weakening sanctions. Firms exporting more to sanctioning countries complied more, while those sourcing more inputs rerouted sanctioned products to Russia. Sanctioning MNEs expanded exports to both sanctioning and Russia-friendly countries, blending compliance and evasion. Financial sanctions led sanctioning MNEs to reduce imports from Russia in risky sectors. To improve sanctions, stronger secondary sanctions and MNE involvement are essential. |
Keywords: Global Supply Chains, Geopolitical Risk, International Conflict. JEL: F14, F63, O19. |
Click here to view the CV. Click here to view the paper. |
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PRESENTER Haishi Li Hong Kong University |
RESEARCH FIELDS International Trade International Macroeconomics Regional Economics |
DATE: 14 November 2024 (Thursday) |
VENUE: Meeting Room 5.1, Level 5 School of Economics Singapore Management University 90 Stamford Road Singapore 178903 |
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