Restructuring of post-crisis GPNs: tourism in Indonesia

Girish Nanda and Keith Hargreaves

Global Development Institute Working Paper Series from GDI, The University of Manchester

Abstract: Abstract Global production network (GPN) maps are not static, and both incremental and major changes can and do occur. This study examines one potentially game-changing scenario, that is, the effect of an external shock. The most damaging of these are severe shocks brought about by economic or terrorist events. Three types of shocks relevant in the case studies of Bali and Sulawesi presented here were the devastating Bali bombs, which fundamentally changed the GPN for low-end mass tourism of Australian origin; the financial crises of 1998 and 2008, which sucked the lifeblood out of the market; and ethnic tensions in Sulawesi, which scared away virtually all tourism from Sulawesi. This paper attempts to show that there can be significant differences in these maps, ‘pre-’ and ‘post-shock’. The paper also discusses the nature of coping by workers in tourism as employment and incomes fell.

Date: 2013
New Economics Papers: this item is included in nep-sea and nep-tur
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:bwp:bwppap:ctg-2013-37

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