Fig. 6.

Ex-ante diversification and the number of firms’ suppliers. Notes: Baseline at the firm$\times$product level with treated firm$\times$product pairs split into a “diversified” and “non-diversified” subsamples. The diversified sample corresponds to firms importing the product from China and somewhere else, whereas the non-diversified subsample includes firms that solely import from China. The outcome here is the (log-) number of countries the firm sources the product from. We perform a Poisson regression to account for the extensive margin at its full extent. The estimated equation includes firm$\times$product and product$\times$period fixed effects. Standard errors are clustered at the firm$\times$product level. Confidence intervals are defined at 5%