A risk analysis on geographical concentration of global supply chains

Inomata Satoshi and Hanaka Tesshu

No 828, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: In this paper we present and analyze new referential statistics for risk assessment on geographical concentration of global supply chains. The study’s net contribution rests on the development of a metric which indicates geographical concentration in terms of the frequency of supply chain engagement with the regions of analytical concerns, alongside the traditional approach based on volume measures of value-added concentration. Japan, a country with a high propensity to encounter natural hazards, and China, under a mounting geopolitical tension with the United States, are chosen as target regions for the risk assessment. The analysis follows a line of techniques in input-output economics known as the “key sector analysis”, yet with methodological augmentation by a compatible analytical framework in the network theory. Using the latest set of multi-country input-output tables constructed by the Organisation for Economic Co-operation and Development (OECD), the concentration risks of some key global supply chains such as the automotive industry and the ICT/electronics equipment industry are identified.

Keywords: risk assessment; global supply chains; choke points; input-output analysis (search for similar items in EconPapers)
JEL-codes: C67 F52 F60 (search for similar items in EconPapers)
Date: 2021-10
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 828. 2021-10

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