The Limits of Local Laws in Global Supply Chains: Extending Governance or Cutting Ties?
Michael Koetter, Melina Ludolph, Hendrik Schub, Fabian Wöbbeking
IWH Discussion Papers,
No. 14,
2025
Abstract
We exploit an information shock related to the German Supply Chain Due Diligence Act and use detailed customs data to analyze how smaller, non-listed firms respond when expecting accountability for externalities beyond their organizational boundaries. Product-level regressions reveal a substantial reduction in imports from high ESG-risk production sectors. Adjustments occur mainly at the extensive margin, indicating that firms cut ties with high-risk suppliers. The product-level results translate into meaningful changes in overall international procurement for firms with Big Four auditors. Our findings suggest potential limits to mandates requiring firms to integrate broad sustainability considerations into operational decisions.
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Mittelfristige Projektion der gesamtwirtschaftlichen Entwicklung und Szenarien für die Erreichung der gesetzlichen Emissionsziele
Andrej Drygalla, Katja Heinisch, Oliver Holtemöller, Axel Lindner, Alessandro Sardone, Christoph Schult, Götz Zeddies
Konjunktur aktuell,
No. 4,
2024
Abstract
Das Produktionspotenzial der deutschen Wirtschaft wächst mittelfristig (2023 bis 2029) mit einer jahresdurchschnittlichen Rate von 0,3% und damit deutlich schwächer als in den Jahren zuvor. Dies ist auf eine ungünstigere Entwicklung aller drei Faktoren (Arbeitsvolumen, Kapitalstock, totale Faktorproduktivität) zurückzuführen. Das potenzielle Wachstum wird insbesondere durch den Rückgang der durchschnittlichen Arbeitszeit gedämpft.
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Research Articles
Research Articles Explore cutting-edge research based on CompNet’s micro-aggregated firm-level data and related analytical tools. These articles cover empirical and theoretical…
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Centre for Business and Productivity Dynamics
Centre for Business and Productivity Dynamics (IWH-CBPD) The Centre for Business and Productivity Dynamics (CBPD) was founded in January 2025 and works with policy and research…
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Job Market Candidates
Job Market Candidates Marius Fourné Marius Fourné is a PhD candidate in Economics at the Halle Institute for Economic Research (IWH) and Martin Luther University of…
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Junior Professorship in VWL, esp. Financial Economics (W1)
Job Vacancy Junior Professorship in VWL, esp. Financial Economics (W1) The Faculty of Economics and Management Science at Leipzig University in cooperation with the Halle…
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Research Clusters
Three Research Clusters Each IWH research group is assigned to a topic-oriented research cluster. The clusters are not separate organisational units, but rather bundle the…
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Past Events
Past Events 14. CompNet Annual Conference (Vilnius, 25-26 September 2025) The 14th CompNet Annual Conference, co-hosted with the Bank of Lithuania, took place on 25–26 September…
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Energy
Energy This research project focused on understanding the various channels through which energy efficiency is achieved within firms. The study aims to investigate these channels…
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Overview
About the project Project Information: Microdata platform for productivity Participating Countries: Slovakia, Slovenia, France, Germany, Portugal, Latvia and Austria. Coordinated…
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