Global supply chain interdependence and shock amplification - evidence from Covid lockdowns

Sally Chen, Eric Tsang and Leanne (Si Ying) Zhang

BIS Quarterly Review, 2023

Abstract: Supply disruptions from the Covid-19 pandemic raised questions about the benefits and costs of global value chain (GVC) participation. We use granular data to document the evolution of GVC firm-level linkages in the aftermath of the Covid-19 outbreak and study how they might have affected equity investors' reaction to pandemic-related disruptions. We find that the number of GVC linkages generally declined and was slow to recover for some sectors after the Covid-19 shock but that the volume of the resilient linkages helped to cushion production disruptions. Firms with GVC links to countries undergoing Covid-related lockdowns suffered larger stock price losses than those without such links.

JEL-codes: F10 G12 G14 O24 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Working Paper: Global supply chain interdependence and shock amplification – evidence from Covid lockdowns (2023)
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