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Other research product . Other ORP type . 2020

Propagation of shocks in global value chains: the coronavirus case

Gerschel, Elie; Martinez, Alejandra; Mejean, Isabelle;
English
Published: 01 Mar 2020
Publisher: HAL CCSD
Country: France
Abstract
International audience; Before spreading globally, the Covid-19 epidemic was concentrated in the Hubei province. To contain the spread of the virus, the Chinese government has imposed quarantine measures and travel restrictions, entailing the slowdown of economic activity. We study the propagation of this geographically concentrated productivity slowdown to the global economy, through global value chains. Reliance on Chinese inputs has dramatically increased since the early 2000s. As a consequence, most countries are exposed to the Chinese productivity slowdown, both directly through their imports of Chinese inputs and indirectly, through other inputs themselves produced with some Chinese value added. This note aims at quantifying the total exposure of France compared to other countries. First, we compute the share of Chinese value added in French production. Then, we use data at the country and sector levels to quantify the impact of travel restrictions on French GDP.
Subjects

[SHS.ECO]Humanities and Social Sciences/Economics and Finance

Related Organizations

Barrot, Jean-Noël and Julien Sauvagnat (2016). “Input Specificity and the Propagation of Idiosyncratic Shocks in Production Networks”. In: The Quarterly Journal of Economics 131.3, pp. 1543-1592. [OpenAIRE]

Boehm, Christoph E., Aaron Flaaen, and Nitya PandalaiNayar (2019). “Input Linkages and the Transmission of Shocks: Firm-Level Evidence from the 2011 To¯hoku Earthquake”. In: The Review of Economics and Statistics 101.1, pp. 60-75.

Carvalho, Vasco, Makoto Nirei, Yukiko Saito, and Alireza Tahbaz-Salehi (2016). Supply Chain Disruptions: Evidence from the Great East Japan Earthquake. Working papers. Cambridge Working Papers in Economics CWPE1670. DOI: 10.17863/CAM.7827. [OpenAIRE]

Funded by
EC| TRADENET
Project
TRADENET
Firm-to-Firm Trade Networks
  • Funder: European Commission (EC)
  • Project Code: 714597
  • Funding stream: H2020 | ERC | ERC-STG
,
ANR| ECODEC
Project
ECODEC
Réguler l'économie au service de la société
  • Funder: French National Research Agency (ANR) (ANR)
  • Project Code: ANR-11-LABX-0047
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