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Global supply constraints from the 2008 and COVID-19 crises

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  • Yagi, Michiyuki
  • Managi, Shunsuke

Abstract

The analysis of specific economic indexes suggests that the economic damage from the 2020 COVID-19 crisis (coronavirus pandemic, apparently first spread from Wuhan, China) may exceed that of the 2008 global financial crisis dating to around September 15, 2008. Thus, by comparing the first four months after these crises, the purpose of this study is to estimate the economic damage of the supply-chain disruptions (i.e., the supply constraints) in the mining and manufacturing (M&M) sectors. Employing the supply-driven input–output (IO) model for the world (35 countries in 56 sectors), the results show that the supply-chain damage from COVID-19 is 1.248%, when compared to the annual gross domestic production (GDP), in the overall sectors, 4.443% in the M&M sectors, and 0.362% in other sectors, which are approximately 1.4 times the figures from the 2008 crisis.

Suggested Citation

  • Yagi, Michiyuki & Managi, Shunsuke, 2021. "Global supply constraints from the 2008 and COVID-19 crises," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 514-528.
    • Handle: RePEc:eee:ecanpo:v:69:y:2021:i:c:p:514-528
    DOI: 10.1016/j.eap.2021.01.008
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    Cited by:

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    2. Yagi, Michiyuki & Managi, Shunsuke, 2023. "The spillover effects of rising energy prices following 2022 Russian invasion of Ukraine," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 680-695.
    3. Bing, Tao & Ma, Hongkun, 2021. "COVID-19 pandemic effect on trading and returns: Evidence from the Chinese stock market," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 384-396.
    4. Camillo Lento & Nikola Gradojevic, 2021. "S&P 500 Index Price Spillovers around the COVID-19 Market Meltdown," JRFM, MDPI, vol. 14(7), pages 1-13, July.
    5. Ratchaphong Klinsrisuk & Watchara Pechdin, 2022. "Evidence from Thailand on Easing COVID-19’s International Travel Restrictions: An Impact on Economic Production, Household Income, and Sustainable Tourism Development," Sustainability, MDPI, vol. 14(6), pages 1-13, March.
    6. Shah, Sayar Ahmad & Garg, Bhavesh, 2023. "Testing policy effectiveness during COVID-19: An NK-DSGE analysis," Journal of Asian Economics, Elsevier, vol. 84(C).
    7. Yang, Song, 2022. "Are private equity and venture capital helping small and medium-sized enterprises during the COVID-19 pandemic? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 1-14.
    8. Christopher M. Durugbo & Zainab Al-Balushi, 2023. "Supply chain management in times of crisis: a systematic review," Management Review Quarterly, Springer, vol. 73(3), pages 1179-1235, September.

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    More about this item

    Keywords

    COVID-19; The 2008 financial crisis; Input–output analysis; Supply constraint;
    All these keywords.

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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