Natural Disasters and the Reshaping of Global Value Chains

نویسندگان

چکیده

To understand the longer-term consequences of natural disasters for global value chains, this paper examines trade in automobile and electronic sectors after 2011 earthquake Japan. Contrary to widespread expectations, we find that shock did not lead reshoring, nearshoring, or diversification across non-Japanese suppliers; intermediate products was disrupted less than final goods. Imports shift new suppliers, especially where dependence on Japan greater. But production relocated developing countries rather other top exporters, larger countries. The results, showing relative inertia goods dominance economic fundamentals (cost scale) determining sourcing decisions, may help us supply chain adjustment disasters, like COVID-19 pandemic.

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ژورنال

عنوان ژورنال: IMF Economic Review

سال: 2022

ISSN: ['2041-4161', '2041-417X']

DOI: https://doi.org/10.1057/s41308-022-00164-w