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Economic Shock Transmission through Global Value Chains: An Assessment using Network Analysis

Author

Listed:
  • Georgios Angelidis

    (Aristotle University of Thessaloniki)

  • Nikos C. Varsakelis

    (Aristotle University of Thessaloniki)

Abstract

This paper examines the role of some key economies in the economic contagion across global value chains using input-output analysis and complex network statistics. The empirical research focuses on China, France, Germany, Italy, Japan, Korea, the United Kingdom, and the United States. A range of novel measures were used to measure the nature and extent of global value chain relationships. The empirical results reveal that, because of the high interdependence and interconnectedness in the global value chain networks, the transmission of an economic shock in China and the United States will be fast, wide, and in-depth in the global value chain networks. Sample countries are more exposed to an economic shock in China than a shock in the other four big economic partners, namely the United States, Germany, Japan, and Korea.

Suggested Citation

  • Georgios Angelidis & Nikos C. Varsakelis, 2023. "Economic Shock Transmission through Global Value Chains: An Assessment using Network Analysis," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 29(3), pages 111-128, August.
    • Handle: RePEc:kap:iaecre:v:29:y:2023:i:3:d:10.1007_s11294-023-09871-0
    DOI: 10.1007/s11294-023-09871-0
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    References listed on IDEAS

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    More about this item

    Keywords

    Global value chain; Trade; Network analysis; COVID-19; Economic shock transmission;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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