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Global value chains before and in times of the COVID-19 pandemic

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  • Folfas Paweł

    (Collegium of World Economy, SGH Warsaw School of Economics, Warsaw, Poland)

Abstract

This paper aims to examine the changes in global value chains (GVCs) in the years 2020–2022 (times of the COVID-19 pandemic) compared to 2019 (last year before the pandemic). GVCs are illustrated by diagrams based on the statistics on international trade measured by value-added exports and imports. In this paper, the final demand approach is applied to measure international trade by value-added exports and imports and they were computed based on inter-country input-output tables delivered by the Asian Development Bank (ADB). The catchphrase “Made in the World” makes an impression, but in reality, value chains are rarely global. They are rather regional with three centers. “Factory Europe”, “Factory Asia”, and “Factory America” can easily be identified in the years 2019–2022 as there were three large regional supply hubs in GVCs: Germany, China, and the United States. When the years 2020–2022 were compared to 2019, “Factory Asia” with center in China elevated their position in GVCs at the expense of “Factory Europe” with center in Germany and “Factory America with center in the USA.”

Suggested Citation

  • Folfas Paweł, 2024. "Global value chains before and in times of the COVID-19 pandemic," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 60(2), pages 147-153.
    • Handle: RePEc:vrs:ijomae:v:60:y:2024:i:2:p:147-153:n:1007
    DOI: 10.2478/ijme-2024-0021
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    References listed on IDEAS

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    More about this item

    Keywords

    fragmentation; global production networks; internationalization; corona crisis; value-added trade;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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