Mapping and testing product-level vulnerabilities in granular production networks

Antoine Berthou, Antton Haramboure and Lea Samek

No 2024/02, OECD Science, Technology and Industry Working Papers from OECD Publishing

Abstract: This paper conducts an in-depth mapping of global value chain (GVC) vulnerabilities, using granular product-level trade data to identify vulnerable products with limited suppliers and substitutability. The study reveals that, in OECD countries, approximately 8% of foreign-sourced intermediate products are vulnerable, with about 50 products identified as highly vulnerable, particularly in the pharmaceutical, mining, and manufacturing sectors. The paper also introduces a quantitative framework for simulating supply shock transmission from upstream suppliers to downstream industries over the short and medium term. This framework leverages unique data that combine Inter-Country Input-Output with detailed product-level trade data from Comtrade. Through simulation exercises, the paper highlights the role of supplier concentration and geography in shock transmissions, as well as the effectiveness of policies in mitigating these impacts. This novel cross-country assessment of GVC disruptions provides new insights on how to manage supply chains in a global economy subject to multiple risks.

Keywords: Global Value Chains; International trade; Resilience (search for similar items in EconPapers)
JEL-codes: F14 F68 L52 (search for similar items in EconPapers)
Date: 2024-03-15
New Economics Papers: this item is included in nep-int and nep-net
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1787/9bcde495-en (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oec:stiaaa:2024/02-en

Access Statistics for this paper

More papers in OECD Science, Technology and Industry Working Papers from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ().