IDEAS home Printed from https://ideas.repec.org/p/oec/stiaac/141-en.html
   My bibliography  Save this paper

Policies to strengthen the resilience of global value chains: Empirical evidence from the COVID-19 shock

Author

Listed:
  • Cyrille Schwellnus
  • Antton Haramboure
  • Lea Samek

Abstract

Widespread supply disruptions in the wake of the COVID-19 pandemic and the Russian Federation’s large-scale aggression against Ukraine have raised concerns among policy makers that globalised value chains expose domestic production to shocks from abroad. This paper uses new indicators of global value chain dependencies and exogenous pandemic shocks to econometrically estimate the effects of supply disruptions abroad on domestic output. The results suggest that the adverse effects of supply disruptions are particularly large when concentration of supplying countries and supplying firms is high. Counterfactual simulations of the econometric model suggest that diversification of suppliers would have sizeable benefits in terms of shielding domestic production against country-specific supply shocks, with partial onshoring of production having only small additional benefits. Technological innovation that reduces foreign dependencies, such as the substitution of renewable energies for fossil fuels, can have similar benefits as diversification.

Suggested Citation

  • Cyrille Schwellnus & Antton Haramboure & Lea Samek, 2023. "Policies to strengthen the resilience of global value chains: Empirical evidence from the COVID-19 shock," OECD Science, Technology and Industry Policy Papers 141, OECD Publishing.
    • Handle: RePEc:oec:stiaac:141-en
    DOI: 10.1787/fd82abd4-en
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/fd82abd4-en
    Download Restriction: no
    File URL: https://libkey.io/10.1787/fd82abd4-en?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kathrin Hofmann & Jürgen Janger & Fabian Unterlass, 2023. "Technologische Souveränität. Empirische Bestimmung und FTI-politische Implikationen," WIFO Studies, WIFO, number 70753, March.

    More about this item

    Keywords

    global value chains; international trade; resiliance;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:stiaac:141-en. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/scoecfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.