Are supply chain vulnerabilities increasing in the era of geoeconomic fragmentation?
Tuuli McCully and
Heli Simola
No 10/2024, BOFIT Policy Briefs from Bank of Finland Institute for Emerging Economies (BOFIT)
Abstract:
We examine changes in the manufacturing sector value chains of the EU, US, China, and India between 2018 and 2023 by introducing three metrics for supply-chain vulnerability. For our first metric, the physical length of a supply chain based on the distance between the producer of the final product and input source country, we find modest evidence of near-shoring for the US, EU, and India. Second, utilizing political distances between the supply chain participants, our assessment of the geopolitical risks of supply chains reveals slight friend-shoring by the US and EU, mainly a result of Russia's reduced participation in their supply chains. Third, looking at the already extensive supply chain diversification of the studied countries, we find diversification has increased modestly since 2018.
Keywords: global value chains; supply chains; fragmentation; value-added trade; input-output (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-cis and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://www.econstor.eu/bitstream/10419/307141/1/1910819514.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:zbw:bofitb:307141
Access Statistics for this paper
More papers in BOFIT Policy Briefs from Bank of Finland Institute for Emerging Economies (BOFIT) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().