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Restart of Industry under the Influence of Covid-19: How Ready is the Global Supply Chain?

Author

Listed:
  • Holger Görg
  • Saskia Mösle
  • Thieß Petersen
  • Hartmut Egger
  • Kemal Kilic
  • Dalia Marin
  • Lisandra Flach
  • Rahel Aichele
  • Martin Braml
  • Ralph Wiechers
  • Thomas Steinwachs
  • Morris Hosseini
  • Michael Baur
  • Kai Joachimsen
  • Ronald Bogaschewsky

Abstract

The outbreak of the coronavirus pandemic has major implications for the international division of labor. In particular, the supply of inputs from abroad is no longer guaranteed. The absence of workers due to illness or the closure of production facilities – first in China, followed by other Asian and European countries – leads to production losses. If there are no substitutes for these inputs in an importing country, the companies concerned are threatened with production losses or even a production standstill. In view of the coronavirus crisis, should companies rethink their business model of global supply chains and reduce their dependence on global production networks? How closely are the economies actually interwoven? Are “deglobalization” and a shifting of production back to Germany and Europe realistic and, above all, desirable?

Suggested Citation

  • Holger Görg & Saskia Mösle & Thieß Petersen & Hartmut Egger & Kemal Kilic & Dalia Marin & Lisandra Flach & Rahel Aichele & Martin Braml & Ralph Wiechers & Thomas Steinwachs & Morris Hosseini & Michael, 2020. "Restart of Industry under the Influence of Covid-19: How Ready is the Global Supply Chain?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(05), pages 03-34, May.
    • Handle: RePEc:ces:ifosdt:v:73:y:2020:i:05:p:03-34
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    References listed on IDEAS

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    More about this item

    Keywords

    Epidemie; Auslandsverlagerung; Lieferkette; Internationale Arbeitsteilung; Internationale Produktion; Betriebliche Standortwahl; Betriebliche Wertschöpfung; Globalisierung;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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