Diversification and resilience of firms in the agrifood supply chain
American Journal of Agricultural Economics
; 2023.
Article
in English
| Scopus | ID: covidwho-2282573
ABSTRACT
Are diversified firms more resilient to negative market shocks than specialized firms? We answer this question in the context of the COVID-19 pandemic by analyzing data from small- and medium-sized firms in the U.S. agrifood supply chain. We first develop revenue-based measures of firms' vertical (across supply-chain segment) and horizontal (within supply-chain segment) diversification. We then compare post pandemic outcomes of more diversified and less diversified firms using several inverse-probability weighting techniques. We find that vertical diversification reduces firms' resilience, whereas horizontal diversification increases firms' resilience. © 2023 The Authors. American Journal of Agricultural Economics published by Wiley Periodicals LLC on behalf of Agricultural & Applied Economics Association.
Full text:
Available
Collection:
Databases of international organizations
Database:
Scopus
Language:
English
Journal:
American Journal of Agricultural Economics
Year:
2023
Document Type:
Article
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