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The 2020 Covid-19 pandemic and global value chains

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  • Roger Strange

    (University of Sussex Business School)

Abstract

This paper considers the impact of the Covid-19 pandemic on firm strategies and, in particular, the configuration of firms’ global value chains (GVCs) once the pandemic has been brought under control. The merits of alternative location strategies (international diversification vs reshoring) are compared, as are the merits of different governance arrangements (internalization vs externalization) for GVC activities. The possibility of fire-sale foreign direct investment is raised, and the wider geopolitical context is emphasized. The widespread human tragedy is noted, as is the dilemma facing national governments around the world in balancing lives and livelihoods.

Suggested Citation

  • Roger Strange, 2020. "The 2020 Covid-19 pandemic and global value chains," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(3), pages 455-465, September.
    • Handle: RePEc:spr:epolin:v:47:y:2020:i:3:d:10.1007_s40812-020-00162-x
    DOI: 10.1007/s40812-020-00162-x
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    References listed on IDEAS

    as
    1. John H. Dunning & Sarianna M. Lundan, 2008. "Multinational Enterprises and the Global Economy, Second Edition," Books, Edward Elgar Publishing, number 3215.
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    3. Fan, Victoria Y & Jamison, Dean T & Summers, Lawrence H, 2018. "Pandemic risk: how large are the expected losses?," Scholarly Articles 35014363, Harvard Kennedy School of Government.
    4. Alexander F. Wagner, 2020. "What the stock market tells us about the post-COVID-19 world," Nature Human Behaviour, Nature, vol. 4(5), pages 440-440, May.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Covid-19 virus; Pandemic; Global value chains; Resilience; Location; Governance;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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    Access and download statistics

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