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The Effect of the COVID-19 Pandemic on Global Production Sharing in East Asia

Author

Listed:
  • Archanun Kohpaiboon
  • Juthathip Jongwanich

    (Faculty of Economics, Thammasat University)

Abstract

This paper examines the effect of the COVID-19 pandemic on global production sharing in ASEAN Member States. Product-level analysis – on hard disk drives, air conditioners, microwaves, televisions, washing machines, and automotive parts – is undertaken to examine trade patterns between January 2019 and October/November 2020. The key finding suggests that the pandemic caused parts shortages, but this effect has been short-lived. There is no strong evidence that multi-national enterprises have altered their supply chains or means of sourcing parts and components in response to the pandemic. There is some indication that multi-national enterprises are moving away from China, but whether this reflects a ‘COVID-19 effect’ or the trade war between the United States and China is not clear. COVID-19, a once-in-a-century event, may not alone be a compelling reason to restructure supply chain management relating to global production sharing, which has been a structural phenomenon driving economic globalisation.

Suggested Citation

  • Archanun Kohpaiboon & Juthathip Jongwanich, 2021. "The Effect of the COVID-19 Pandemic on Global Production Sharing in East Asia," Working Papers DP-2021-03, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2021-03
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    References listed on IDEAS

    as
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    2. Bonadio, Barthélémy & Huo, Zhen & Levchenko, Andrei A. & Pandalai-Nayar, Nitya, 2021. "Global supply chains in the pandemic," Journal of International Economics, Elsevier, vol. 133(C).
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    5. Kimura, Fukunari & Takahashi, Yuya & Hayakawa, Kazunobu, 2007. "Fragmentation and parts and components trade: Comparison between East Asia and Europe," The North American Journal of Economics and Finance, Elsevier, vol. 18(1), pages 23-40, February.
    6. Gaulier, Guillaume & Sztulman, Aude & Ünal, Deniz, 2020. "Are global value chains receding? The jury is still out. Key findings from the analysis of deflated world trade in parts and components," International Economics, Elsevier, vol. 161(C), pages 219-236.
    7. Hill, Hal & Menon, Jayant, 2013. "Cambodia: Rapid Growth with Institutional Constraints," ADB Economics Working Paper Series 331, Asian Development Bank.
    8. Prema-chandra Athukorala, 2005. "Product Fragmentation and Trade Patterns in East Asia," Asian Economic Papers, MIT Press, vol. 4(3), pages 1-27, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Antonio Fanelli, 2021. "How ASEAN Can Improve Its Response to the Economic Crisis Generated by the COVID-19 Pandemic: Inputs drawn from a comparative analysis of the ASEAN and EU responses," Working Papers DP-2021-08, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. Shigeru Kimura & Ikarii Ryohei & Endo Seiya, 2021. "Impacts of COVID-19 on the Energy Demand Situation of East Asia Summit Countries," Working Papers DP-2021-22, Economic Research Institute for ASEAN and East Asia (ERIA).
    3. Duc Anh Dang & Vuong Anh Dang, 2021. "The Effects of SPSs and TBTs on Innovation: Evidence from Exporting Firms in Viet Nam," Working Papers DP-2021-16, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Ben Shepherd, 2021. "Facilitating Trade in Pharmaceuticals: A Response to the COVID-19 Pandemic," Working Papers DP-2021-05, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Oscar Fernando & Lili Yan Ing, 2022. "Indonesia’s Local Content Requirements: An Assessment on Consistency with Free Trade Agreement Commitments," Working Papers DP-2021-53, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Chin Hee Hahn, & Ju Hyun Pyun, 2021. "Export Market Survival of Pioneers and Followers," Working Papers DP-2021-46, Economic Research Institute for ASEAN and East Asia (ERIA).
    7. Jennifer Chan, 2021. "Domestic Tourism as a Pathway to Revive the Tourism Industry and Business Post the COVID-19 Pandemic," Working Papers DP-2021-25, Economic Research Institute for ASEAN and East Asia (ERIA).
    8. Aloysius Gunadi Brata & Eusebius Pantja Pramudya & Esther Sri Astuti & Heffi Christya Rahayu & Heronimus Heron, 2021. "COVID-19 and Socio-Economic Inequalities in Indonesia: A Subnational-level Analysis," Working Papers DP-2021-04, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. Alongkorn Tanasritunyakul, 2023. "Export survival for Thailand after the COVID-19 pandemic," Discussion Papers 20230809, Thammasat University, Faculty of Economics, revised Oct 2023.
    10. Christopher Findlay & Hein Roelfsema & Niall Van De Wouw, 2021. "Feeling the Pulse of Global Value Chains: Air Cargo and COVID-19," Working Papers DP-2021-23, Economic Research Institute for ASEAN and East Asia (ERIA).
    11. Sarah Y Tong & Yao Li & Tuan Yuen Kong, 2021. "Exploring Digital Economic Agreements to Promote Digital Connectivity in ASEAN," Working Papers DP-2021-24, Economic Research Institute for ASEAN and East Asia (ERIA).

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    More about this item

    Keywords

    COVID-19; global production sharing; ASEAN;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F20 - International Economics - - International Factor Movements and International Business - - - General

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