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Global Value Chains in the Era of the COVID-19 Pandemic: Symptoms of Deglobalization

Author

Listed:
  • Bogusława Drelich-Skulska
  • Sebastian Bobowski
  • Jan Gola

Abstract

Purpose: The COVID-19 pandemic significantly affected the performance of global value chains (GVCs) due to lockdowns, restricted labor mobility, and consumers’ access to retail markets. Authors verify the research hypothesis as follows: recent disruptions in GVCs will induce reshoring and permanent reconfiguration of economic activity whereas enhancing deglobalization. Design/Methodology/Approach: Authors conducted a critical analysis of economic papers registered in the Web of Science and Scopus databases and ratio analysis based on the World Bank’s World Development Indicators and Reports. Findings: Authors argued that the reshoring of GVCs seems to lack solid, far-reaching economic premises, whereas policy recommendations in favor of enhancing GVCs’ stability and resilience proved to be significant. Practical Implications: Authors provided a set of policy recommendations regarding enhancing the stability and resilience of GVCs when facing shocks such as the COVID-19 pandemic to minimize negative impacts related to reshoring and reconfiguring economic activity, e.g., discouraging productivity and competitiveness across regions, industries, and enterprises. Originality/Value: The paper discusses current and vital issues associated with implications of the COVID-19 pandemic for GVCs activities, providing valuable policy recommendations for mitigating deglobalization trends.

Suggested Citation

  • Bogusława Drelich-Skulska & Sebastian Bobowski & Jan Gola, 2021. "Global Value Chains in the Era of the COVID-19 Pandemic: Symptoms of Deglobalization," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 905-913.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:special3:p:905-913
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    More about this item

    Keywords

    Global value chains (GVCs); COVID-19 pandemic; deglobalization.;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • K15 - Law and Economics - - Basic Areas of Law - - - Civil Law; Common Law
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

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