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Trade crisis and recovery : restructuring of global value chains

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Author Info

  • Milberg, William
  • Winkler, Deborah

Abstract

The recent large and rapid slowdown in economic activity has resulted in even larger and more rapid declines in international trade. As world trade is set to rebound, this paper addresses three questions: (i) Will trade volumes rebound in a symmetric fashion as world economic growth rebounds? (ii) Will the crisis result in a change in the structure of trade, and in particular will it lead to a reversal of the pattern of more diversified sourcing and thus to a consolidation of global value chains? (iii) What policies can improve the prospects for developing country growth in the event that trade volumes do not rebound symmetrically and there is a consolidation of some global value chains?

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5294.

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Date of creation: 01 May 2010
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Handle: RePEc:wbk:wbrwps:5294

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Related research

Keywords: Economic Theory&Research; Currencies and Exchange Rates; Emerging Markets; Debt Markets; Trade Policy;

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Cited by:
  1. Richard Baldwin, 2012. "Trade and Industrialisation after Globalisation’s Second Unbundling: How Building and Joining a Supply Chain are Different and Why it Matters," NBER Chapters, in: Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century National Bureau of Economic Research, Inc.
  2. Fan, Ying, 2011. "Services Policy Reform in the People’s Republic of China: Before and After the Global Financial Crisis," ADBI Working Papers 304, Asian Development Bank Institute.
  3. Cornelia Staritz, 2011. "Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World," World Bank Publications, The World Bank, number 2547.
  4. Baldwin, Richard, 2012. "Trade and industrialisation after globalisation’s 2nd unbundling: How building and joining a supply chain are different and why it matters," CEPR Discussion Papers 8768, C.E.P.R. Discussion Papers.

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