Global Value Chains and U.S. Economic Activity During COVID-19

Jesse LaBelle, Fernando Leibovici and Ana Maria Santacreu

Review, 2021, vol. 103, issue 3, 288 pages

Abstract: We investigate the role of global value chains in the declines of manufacturing employment and output in the U.S. during COVID-19. Specifically, we identify the role of global value chains by exploiting heterogeneity across industries in cross-country sourcing patterns and its interaction with exogenous cross-country variation in the containment policies introduced to combat the virus. We find that global value chains played a significant role in the decline of output and employment across U.S. manufactures. Moreover, we find a modest impact of diversifying or renationalizing global value chains in mitigating the economy's exposure to foreign shocks.

Keywords: COVID-19; global value chains (search for similar items in EconPapers)
JEL-codes: F13 F14 F44 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlrv:92886

DOI: 10.20955/r.103.271-88

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