IDEAS home Printed from https://ideas.repec.org/p/era/wpaper/dp-2021-03.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: https://www.eria.org/uploads/media/discussion-papers/ERIA-Research-on-COVID-19/The-Effect-of-the-COVID-19-Pandemic-on-Global-Production-Sharing-in-East-Asia.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Baldwin, Richard & Okubo, Toshihiro, 2019. "GVC journeys: Industrialisation and deindustrialisation in the age of the second unbundling," Journal of the Japanese and International Economies, Elsevier, vol. 52(C), pages 53-67.
    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).
    3. Prema-chandra Athukorala & Tran Tien, 2012. "Foreign direct investment in industrial transition: the experience of Vietnam," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 17(3), pages 446-463.
    4. Hal Hill & Jayant Menon, 2013. "Cambodia: Rapid Growth with Weak Institutions," Asian Economic Policy Review, Japan Center for Economic Research, vol. 8(1), pages 46-65, June.
    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

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. 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).
    6. 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).
    7. 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).
    8. Alongkorn Tanasritunyakul, 2023. "Export survival for Thailand after the COVID-19 pandemic," Discussion Papers 20230809, Thammasat University, Faculty of Economics, revised Oct 2023.
    9. 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).
    10. 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).
    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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Charlie Rumsby, 2021. "The God School: Informal Christian Education and Emerging Aspirations Among De Facto Stateless Children Living in Cambodia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(1), pages 89-108, February.
    2. David Córcoles & Carmen Díaz-Mora & Rosario Gandoy, 2013. "Product sophistication: A tie that binds partners in international production sharing," Working Papers 13-03, Asociación Española de Economía y Finanzas Internacionales.
    3. João Amador & Sónia Cabral, 2014. "Global Value Chains: Surveying Drivers, Measures and Impacts," Working Papers w201403, Banco de Portugal, Economics and Research Department.
    4. Niru Yadav, 2014. "Impact of Trade Facilitation on Parts and Components Trade," The International Trade Journal, Taylor & Francis Journals, vol. 28(4), pages 287-310, October.
    5. Martínez-Zarzoso, Inmaculada & Voicu, Anca M. & Vidovic, Martina, 2011. "CEECs Integration into Regional Production Networks. Trade Effects of EU-Accession," Proceedings of the German Development Economics Conference, Berlin 2011 55, Verein für Socialpolitik, Research Committee Development Economics.
    6. Martínez-Zarzoso, Inmaculada & Voicu, Anca M. & Vidovic, Martina, 2011. "CEECs integration into regional and global production networks," University of Göttingen Working Papers in Economics 125, University of Goettingen, Department of Economics.
    7. Amador, João & Cabral, Sónia, 2014. "Global value chains: surveying drivers and measures," Working Paper Series 1739, European Central Bank.
    8. Fukunari Kimura & Ayako Obashi, 2016. "Production Networks in East Asia: What We Know So Far," ADB Institute Series on Development Economics, in: Ganeshan Wignaraja (ed.), Production Networks and Enterprises in East Asia, edition 1, chapter 0, pages 33-64, Springer.
    9. Tanaka, Kiyoyasu, 2017. "Trade and investment in Cambodia," IDE Discussion Papers 667, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    10. Andrew Jia-Yi Kam, 2015. "Determinants Of International Production Fragmentation: Malaysia’S Experience In The Information, Communications And Telecommunications (Ict) Industry," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 60(05), pages 1-22, December.
    11. Moon Jung Choi & Geun-Young Kim & Joo Yong Lee, 2015. "An Analysis of Trade Patterns in East Asia and the Effects of the Real Exchange Rate Movements," Working Papers 2015-29, Economic Research Institute, Bank of Korea.
    12. Kiyoyasu Tanaka & Souknilanh Keola, 2017. "Shedding Light on the Shadow Economy: A Nighttime Light Approach," Journal of Development Studies, Taylor & Francis Journals, vol. 53(1), pages 32-48, January.
    13. Cantor-Graae, Elizabeth & Chak, Thida & Sunbaunat, Ka & Jarl, Johan & Larsson, Charlotte A., 2014. "Long-term psychiatric consequences of exposure to trauma in Cambodia: A regional household survey," Social Science & Medicine, Elsevier, vol. 123(C), pages 133-140.
    14. Hal Hill & Jayant Menon, 2014. "Cambodia: Rapid Growth in an Open, Post-conflict Economy," The World Economy, Wiley Blackwell, vol. 37(12), pages 1649-1668, December.
    15. Inmaculada Martínez-Zarzoso & Martina Vidovic & Anca M. Voicu, 2014. "EU-Accession Effects on Sectoral Trade: A Helpman-Melitz-Rubinstein Approach with Panel Data," CESifo Working Paper Series 4903, CESifo.
    16. Leticia Blazquez & Carmen Diaz-Mora & Rosario Gandoy, 2011. "EU Integration and Production Networks: Evidende from Spain," ERSA conference papers ersa10p583, European Regional Science Association.
    17. Yoke Fong Kong & Richard Kneller, 2016. "Measuring the Impact of China's Export Growth on its Asian Neighbours," The World Economy, Wiley Blackwell, vol. 39(2), pages 195-220, February.
    18. Takatoshi Ito & Kazumasa Iwata & Colin McKenzie & Shujiro Urata, 2013. "Association of Southeast Asian Nations' New Frontiers: Editors' Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 8(1), pages 1-24, June.
    19. Tanaka, Kiyoyasu & Hashiguchi, Yoshihiro, 2017. "Agglomeration economies in the formal and informal sectors : a Bayesian spatial approach," IDE Discussion Papers 666, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    20. repec:got:cegedp:125 is not listed on IDEAS
    21. Leticia Blázquez & Carmen Díaz-Mora & Rosario Gandoy, 2012. "Eu Integration And Production Networks," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 20(3), pages 5-24, Winter.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:era:wpaper:dp-2021-03. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ranti Amelia The email address of this maintainer does not seem to be valid anymore. Please ask Ranti Amelia to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/eriadid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.