EconPapers    
Economics at your fingertips  
 

Global Supply Chains in the Pandemic

BarthŽlŽmy Bonadio, Zhen Huo, Andrei Levchenko and Nitya Pandalai-Nayar
Additional contact information
BarthŽlŽmy Bonadio: University of Michigan

No 683, Working Papers from Research Seminar in International Economics, University of Michigan

Abstract: We study the role of global supply chains in the impact of the Covid-19 pandemic on GDP growth using a multi-sector quantitative framework implemented on 64 countries. We discipline the labor supply shock across sectors and countries using the fraction of work in the sector that can be done from home, interacted with the stringency with which countries imposed lockdown measures. One quarter of the total model-implied real GDP decline is due to transmission through global supply chains. However, ÒrenationalizationÓ of global supply chains does not in general make countries more resilient to pandemic-induced contractions in labor supply. This is because eliminating reliance on foreign inputs increases reliance on the domestic inputs, which are also disrupted due to nationwide lockdowns. In fact, trade can insulate a country imposing a stringent lockdown from the pandemic-shock, as its foreign inputs are less disrupted than its domestic ones. Finally, unilateral lifting of the lockdowns in the largest economies can contribute as much as 2.5% to GDP growth in some of their smaller trade partners.

Keywords: production networks; international transmission; pandemic; Covid-19 (search for similar items in EconPapers)
JEL-codes: F41 F44 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2021-04
New Economics Papers: this item is included in nep-int and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.fordschool.umich.edu/rsie/workingpapers/Papers676-700/r683.pdf

Related works:
Working Paper: Global Supply Chains in the Pandemic (2020) Downloads
Working Paper: Global Supply Chains in the Pandemic (2020) Downloads
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:mie:wpaper:683

Access Statistics for this paper

More papers in Working Papers from Research Seminar in International Economics, University of Michigan Contact information at EDIRC.
Bibliographic data for series maintained by FSPP Webmaster ().

 
Page updated 2021-10-09
Handle: RePEc:mie:wpaper:683