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Horses for courses: measuring foreign supply chain exposure

Author

Listed:
  • Baldwin, Richard

    (The Graduate Institute of International and Development Studies (IHEID))

  • Freeman, Rebecca

    (Bank of England)

  • Theodorakopoulos, Angelos

    (Aston Business School)

Abstract

Perceptions of global supply chains (GSCs) have shifted in recent years from a positive to a more cautious view. Standard GSC measures have mostly not adapted to this change as they focus on participation in, rather than exposure to, foreign supply chains. This paper presents the tools necessary to track foreign GSC exposure, and introduces a systematic shocks approach to GSC indicator design. We use this to develop indicators that gauge the impact of a variety of foreign shocks. We argue that different indicators are appropriate to different questions and show that they can provide qualitatively different answers to the same foreign exposure question.

Suggested Citation

  • Baldwin, Richard & Freeman, Rebecca & Theodorakopoulos, Angelos, 2022. "Horses for courses: measuring foreign supply chain exposure," Bank of England working papers 996, Bank of England.
    • Handle: RePEc:boe:boeewp:0996
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    Cited by:

    1. Baldwin, Richard & Freeman, Rebecca & Theodorakopoulos, Angelos, 2023. "Hidden exposure: measuring US supply chain reliance," Bank of England working papers 1052, Bank of England.

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    More about this item

    Keywords

    Global supply chains; global value chains; foreign exposure; globalisation;
    All these keywords.

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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