Thursday February 12, 2026
14h-15h - 20 avenue de Ségur 75007
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Séminaire de recherche du CEPII : "How Due Diligence Shapes Firms’ Imports"
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Léa Marchal will present “How Due Diligence Shapes Firms’ Imports”. Co-authored by Farida Abdelsalam (Université Paris 1 Panthéon Sorbonne) and Frauke Steglich (Kiel Institute for the World Econom).
Due diligence laws are increasingly used to regulate global value chains. This paper examines how such regulations affect firms’ import decisions, using France’s 2018 Duty of Vigilance Law. The law requires large firms to identify, prevent, and mitigate harms throughout their supply chains. We combine French administrative data with a measure of human rights based on the U.S. Trafficking Victims Protection Reauthorization Act. Our identification strategy exploits variation in firms’ pre-law exposure to human-rights risks. Our results indicate that covered firms at risk were already reducing imports from high-risk markets prior to the law, and this trend continues after its implementation. This suggests that the Duty of Vigilance Law did not measurably affect sourcing patterns and that observed declines reflect pre-existing adjustments rather than the regulation itself. We also find evidence that the change in sourcing patterns is accompanied by trade diversion from high-risk suppliers. BY INVITATION ONLY Contact: conferences  cepii.fr |
