EconPapers    
Economics at your fingertips  
 

From SARS to COVID-19: The evolving role of China-ASEAN production network

Ammu George, Changtai Li, Jing Zhi Lim and Taojun Xie

Economic Modelling, 2021, vol. 101, issue C

Abstract: Two decades after the severe acute respiratory syndrome (SARS) outbreak, Asia is confronted with the coronavirus disease 2019 (COVID-19) that has significantly affected the region's economy. In a novel general equilibrium model, we introduce epidemiological dynamics to the production network between China and the Association of Southeast Asian Nations (ASEAN). In this model, agents' risk-averse behavior during pandemics leads to shifting demands across economic sectors. We calibrate the model with the Organisation for Economic Co-operation and Development (OECD) inter-country input-output tables for pre-SARS and pre-COVID-19 periods and control for disease dynamics across years. Findings show that in the absence of policy interventions, China's greater significance in global value chains is associated with substantial economic impacts, within China and the ASEAN region. Our sensitivity analyses further show that China's containment efforts reduce the spillover effects on ASEAN.

Keywords: COVID-19; Production network; China; Susceptible-infected-recovered model (search for similar items in EconPapers)
JEL-codes: E2 F1 I1 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999321000997
Full text for ScienceDirect subscribers only

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:eee:ecmode:v:101:y:2021:i:c:s0264999321000997

DOI: 10.1016/j.econmod.2021.105510

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-01-15
Handle: RePEc:eee:ecmode:v:101:y:2021:i:c:s0264999321000997