Economics at your fingertips  

The impact of Covid-19 on global value chains

Heli Simola

No 2/2021, BOFIT Policy Briefs from Bank of Finland Institute for Emerging Economies (BOFIT)

Abstract: The Covid-19 pandemic has hit international trade hard, creating concerns of serious disruptions to global value chains (GVCs). This paper provides a preliminary analysis on the development of GVC trade during the current crisis with a focus on the internal and external trade of the EU. The potential consequences of the pandemic and other key factors for GVCs are discussed on the basis of a review of recent literature. We find that trade overall has been hit hard by the pandemic, but not GVC trade in particular. The sector of transport equipment makes a notable exception. Our analysis suggests that the Covid-19 crisis will not necessarily lead to a major restructuring of GVCs, but could fortify several trends shaping GVC development. While several factors limit future expansion of GVCs, the requisite complexity and high restructuring costs of existing GVCs make it unlikely that they will be dismantled anytime soon.

Keywords: Global value chains; International trade; Covid-19 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) (application/pdf)

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:

Access Statistics for this paper

More papers in BOFIT Policy Briefs from Bank of Finland Institute for Emerging Economies (BOFIT) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

Page updated 2023-11-08
Handle: RePEc:zbw:bofitb:22021