Structural dependencies and choke points in GVCs: An industry-level analysis

Robert Stehrer

No 480, wiiw Research Reports from The Vienna Institute for International Economic Studies, wiiw

Abstract: Global value chains (GVCs) are intricate international networks in which the production and distribution of goods and services across multiple economies and industries is coordinated. Their complexity introduces strategic dependencies when economies or industries rely heavily on a limited number of foreign suppliers. Such dependencies can also create additional vulnerabilities, particularly at choke points (i.e. key links or nodes in the chain) whose disruption – whether due to political instability and geopolitical tensions, natural disasters, pandemics or policy shocks and trade restrictions – can halt production. This study builds on previous research by examining two factors (i) size dependencies arising when an importing economy-industry pair relies largely on the inputs of a partner economies, and (ii) choke dependencies, where imports from one economy pass through another, creating potential choke points. Choke dependency is particularly concerning, as disruptions in the choke economy can impact not only its direct exports but also the flow of goods from other suppliers. Using the multi-country input-output tables (MC IOTs), this study introduces two indicators to assess dependencies (i) ‘size dependency’, based on the share of an economy-industry’s foreign output sourced from a specific partner, and (2) ‘choke dependency’, based on the pass-through frequency (ptf) indicator, which reveals how often inputs from third economies are routed through a particular partner. An economy-industry pair is considered dependent if it meets thresholds for size dependency, choke dependency or both. This comprehensive approach aims to offer a deeper understanding of systemic vulnerabilities in global trade networks.

Keywords: Global value chains; choke points; dependencies; vulnerabilities; GVC metrics (search for similar items in EconPapers)
JEL-codes: C67 F14 F15 (search for similar items in EconPapers)
Pages: 42 pages including 3 Tables and 26 Figures
Date: 2026-02
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