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Firm-Level Analysis & Applied EconometricsApprox. 2016–2024 panel · Research in Progress

Inventory Adjustment under External Input Shocks

Poster summary

Firm-level panel data · external shock exposure · interaction models · applied econometrics · robustness analysis

Firm-level evidence on how inventory positions interact with external input shocks and the conditions under which inventory may provide resilience or amplify adjustment costs.

01

Research question

When firms face external input shocks, does inventory act as a buffer against disruption or become a burden as holding costs and uncertainty rise?

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Methodology

Firm-panel regressions, inventory-by-shock interaction models, alternative exposure constructions, and robustness checks; current work prioritizes identification and measurement design

03

Dataset

Vietnamese firm-level panel covering approximately 2016–2024, combined with externally constructed input and commodity shock exposure measures based on firm or industry input structures

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Main finding

Empirical design and robustness development are ongoing. Preliminary evidence is not yet sufficient to support a strong causal claim.

Inventory Adjustment under External Input Shocks

Overview

This project studies how firms adjust or use inventory when exposed to external input shocks. It asks whether inventory provides a buffer against disruption or instead amplifies adjustment costs when uncertainty and carrying costs rise.

Research Question

How do inventory positions condition firm responses to external input and commodity shocks?

Data

The empirical design combines a Vietnamese firm-level panel covering approximately 2016–2024 with externally constructed exposure measures. Exposure is built from external input or commodity shocks and the input structure of firms or industries.

Methodology

Current work uses panel regressions, inventory-by-exposure interactions, alternative exposure constructions, and robustness checks. The design is being refined around measurement validity, identification assumptions, and the conditions under which inventory can plausibly provide resilience.

Current Evidence

The analysis remains in development. Preliminary patterns are treated as descriptive and are not presented as establishing a causal effect.

Limitations

Exposure measurement and potential confounding remain central design challenges. Results will depend on the stability of alternative exposure definitions and on whether the panel specifications can separate external shocks from correlated firm and industry conditions.

Current Status

  • Firm-level panel assembly and validation are active.
  • Exposure construction and interaction specifications are being refined.
  • Alternative definitions and robustness checks are in development.
  • No strong causal claim is made at this stage.