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A global trade supply chain vulnerability in COVID-19 pandemic: An assessment metric of risk and resilience-based efficiency of CoDEA method

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  • Jomthanachai, Suriyan
  • Wong, Wai-Peng
  • Soh, Keng-Lin
  • Lim, Chee-Peng

Abstract

The COVID-19 pandemic has an adverse impact on the global trade supply chain. Countries where the economy is driven by global trade, either as exporters or importers and are faced with the problem of declining imports and exports. This is due to the interruption of the main players of the global supply chain (i.e., production, logistics and transportation sector) as well as the slow-down in consumption of overseas customers. This paper presents the development of an efficiency related metric from the Coherent Data Envelopment Analysis (CoDEA) method for assessing the vulnerability (or conversely, the robustness) levels of the supply chain system of six ASEAN countries. The results reveal that Thailand is most vulnerable to international supply chain issues indicated by its lowest efficiency score. This is due to Thailand's severe disruption of logistics and transportation systems compared with its neighboring countries. In contrast, Vietnam is the most robust because of its efficiency in the exports sector. Our research reveals that trading partners with a lower risk and the ability to rapidly recover their import volume reflect their less vulnerable supply chains. This research provides the associated strategies to establish a resilient global supply chain in spite of the COVID-19 pandemic.

Suggested Citation

  • Jomthanachai, Suriyan & Wong, Wai-Peng & Soh, Keng-Lin & Lim, Chee-Peng, 2022. "A global trade supply chain vulnerability in COVID-19 pandemic: An assessment metric of risk and resilience-based efficiency of CoDEA method," Research in Transportation Economics, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:retrec:v:93:y:2022:i:c:s0739885921001384
    DOI: 10.1016/j.retrec.2021.101166
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    Cited by:

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    2. Hancock, Mary Everett & Mora, Jesse, 2023. "The Impact of COVID-19 on Chinese trade and production: An empirical analysis of processing trade with Japan and the US," Journal of Asian Economics, Elsevier, vol. 86(C).
    3. Li, Jingwen & Wang, Yue & Song, Yubing & Su, Chi Wei, 2023. "How resistant is gold to stress? New evidence from global supply chain," Resources Policy, Elsevier, vol. 85(PB).
    4. Qin, Meng & Su, Chi-Wei & Umar, Muhammad & Lobonţ, Oana-Ramona & Manta, Alina Georgiana, 2023. "Are climate and geopolitics the challenges to sustainable development? Novel evidence from the global supply chain," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 748-763.

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    More about this item

    Keywords

    COVID-19; Vulnerability; Risk; Resilience; Global supply chain; Data envelopment analysis;
    All these keywords.

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative

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