Template-Type: ReDIF-Article 1.0
Author-Name: Sally Chen
Author-Name: Eric Tsang
Author-Name: Leanne Si Ying Zhang
Title: Global supply chain interdependence and shock amplification - evidence from Covid lockdowns
Abstract: Supply disruptions from the Covid-19 pandemic raised questions about the benefits and costs of global value chain (GVC) participation. We use granular data to document the evolution of GVC firm-level linkages in the aftermath of the Covid-19 outbreak and study how they might have affected equity investors' reaction to pandemic-related disruptions. We find that the number of GVC linkages generally declined and was slow to recover for some sectors after the Covid-19 shock but that the volume of the resilient linkages helped to cushion production disruptions. Firms with GVC links to countries undergoing Covid-related lockdowns suffered larger stock price losses than those without such links.
Journal: BIS Quarterly Review
File-URL: http://www.bis.org/publ/qtrpdf/r_qt2303g.pdf
File-Format: Application/pdf
File-URL: http://www.bis.org/publ/qtrpdf/r_qt2303g.htm
File-Format: text/html
Year: 2023
Month: March
Classification-JEL: F10, G12, G14, O24
Handle: RePEc:bis:bisqtr:2303g