Corona-shock Hits the Economy – To What Extent Finland Is Dependent on Global Value Chains?

Jyrki Ali-Yrkkö and Tero Kuusi

No 87, ETLA Brief from The Research Institute of the Finnish Economy

Abstract: Abstract The spread of Coronavirus (SARS-CoV-2) has caused distortions to global value chains. This report studies how dependent Finnish companies and industries are on raw materials, components and other intermediate goods/services that they use in their own production. Our results suggest that the great majority of the supply of key intermediates such as electronic components, parts of motor vehicles and medical products and their ingredients are sourced abroad. Over 80% of these intermediate goods/products are sourced abroad. In several industries critical to society, the shares are substantially lower. In the Food industry, 20% of intermediate goods are sourced abroad. In Agriculture and in the Energy supply the shares are 14% and 25%, correspondingly. The spread of Coronavirus and the corresponding preventive measures cause distortions to global value chains. Therefore, economic policy should provide means and tools that help to sustain and re-organize them.

Keywords: Global value chain; GVC; Imports; Dependence; Resilience; Value added (search for similar items in EconPapers)
JEL-codes: F14 F23 L14 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2020-03-26
New Economics Papers: this item is included in nep-int
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.etla.fi/wp-content/uploads/ETLA-Muistio-Brief-87.pdf (application/pdf)

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:rif:briefs:87

Ordering information: This working paper can be ordered from
https://www.etla.fi/ ... sista-arvoketjuista/

Access Statistics for this paper

More papers in ETLA Brief from The Research Institute of the Finnish Economy Contact information at EDIRC.
Bibliographic data for series maintained by Kaija Hyvönen-Rajecki ().