EconPapers    
Economics at your fingertips  
 

Isolating China: Deglobalisation and its Impact on Global Value Chains

Badri Narayanan Gopalakrishnan, Sumathi Lalapet Chakravarthy, Tavishi Tewary and Vranda Jain

Foreign Trade Review, 2022, vol. 57, issue 4, 390-407

Abstract: As global value chains (GVCs) account for 80% of global trade, the revival of protectionism, amidst the looming trade tensions between United States and other trading partners, particularly China will dampen the international input–output relations. By using a multi-regional and multi-sectoral dynamic computable general equilibrium model, this study analyses China driven GVCs. The study explores the impact of tariff change on China and its major trading partners on economic variables like consumption, investment, government expenditure, exports and imports and sectors like electronic goods, coal, crude oil and machine equipment for the five-year period, that is, 2021–2025. GTAP 10 database has been used. The findings of the study suggest that although China’s dominance may diminish, yet it would continue to be one of the prominent players in GVC. Further, based on the results, the global economy can look forward to fragmented and locally oriented supply chains. At the sectoral level, the shorter supply chains would lead a further disjoint global trade system with a wider range of suppliers for similar products and hence increased regionalisation of production. JEL Codes: F10, F17, F60, F16, D58

Keywords: Globalisation; tariffs; global value chains; China; trade; CGE model (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/00157325211045463 (text/html)

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:sae:fortra:v:57:y:2022:i:4:p:390-407

DOI: 10.1177/00157325211045463

Access Statistics for this article

More articles in Foreign Trade Review
Bibliographic data for series maintained by SAGE Publications ().

 
Page updated 2022-08-13
Handle: RePEc:sae:fortra:v:57:y:2022:i:4:p:390-407