The Impact of Covid -19 Pandemic on Supply Chain Trade

Year 2021, Volume: 1 Issue: 1, 51 - 60, 01.06.2021

Süleyman Armağan Vurdu

Abstract

Global supply chains have gained importance in developing interlinkages among markets as outsourcing of production processes became widespread. Together with the unprecedented Covid-19 crisis, the highly integrated globe encountered demand and supply shocks. As a result of the supply chain disruptions and logistical constraints, the pandemic has revealed the vulnerabilities in industrial supply chains, and both governments and enterprises have started to search for ways to build resilience, regain and improve the competitiveness and prepare for future shocks. Recently, the over-integration of the global supply chains has already being questioned and discussion of a new structurization has grown with the pandemic. In this regard, this study examines the emergence of global value chains and the growth of interdependence of economies, exemplifies how any blockage in any economy can affect the other economies using the value-added trade calculations, and evaluates the expectations for the future evolution of supply chains in terms of industries and regions.

Keywords

Global Supply Chains, Covid-19, Disruption in Supply Chain

References

• Ahir, H., Bloom, N., & Furceri, D. (2018, October 29). The World Uncertainty Index. doi: 10.2139/ssrn.3275033
• Gartner, Inc. (2020, June 24). Gartner Survey Reveals 33% of Supply Chain Leaders Moved Business Out of China or Plan to by 2023. Press Release. Stamford, Conn.
• Gartner Geraint John | Kamala Raman. Retrieved from https://www.gartner.com/en/newsroom/press-releases/2020-06-24-gartner-survey-reveals-33-percent-of-supply-chain-leaders-moved-business-out-of-china-or-plan-to-by-2023
• Hille, K. (2020, August 18). China’s share of global exports falls in supply chains rethink. Financial Times. Retrieved from https://www.ft.com/content/bfef2854-f8f3-4ce6-a00f-3b11123b01e8/
• International Trade Centre. (2020, June). SME Competitiveness Outlook 2020: COVID-19: The Great Lockdown and its Impact on Small Business. Geneva: ITC. Retrieved from https://www.intracen.org/uploadedFiles/intracenorg/Content/Publications/ITCSMECO2020.pdf/
• Lambert, L. (2020, March 11). 75% of companies report coronavirus has disrupted their supply chains. Fortune. Retrieved from https://fortune.com/2020/03/11/75-of-companies-report-coronavirus-has-disrupted-their-supply-chains/
• Lindbeck, A. (Ed). (1992). Nobel lectures, economics 1969-1980. Singapore: World Scientific Publishing Co.
• McKinsey Global Institute. (2020, August 6). Risk, resilience, and rebalancing in global value chains. Retrieved from https://www.mckinsey.com/business-functions/operations/our-insights/risk-resilience-and-rebalancing-in-global-value-chains/
• OECD. (2018, December). Trade in value added. Retrieved from http://www.oecd.org/industry/ind/TIVA-2018-Turkey.pdf
• OECD. (2018, December). Trade in value-added ındicators guide to country notes. Retrieved from http://www.oecd.org/sti/ind/tiva-2018-guide-to-country-notes.pdf
• PwC. (2020, August 11). CEOs: Post-covid changes are permanent and there are more to come. Retried from https://www.pwc.com/gx/en/news-room/press-releases/2020/ceo-survey-covid-update.html
• World Bank. (n.d). GDP (current US$) [Data file]. Retrieved from https://data.worldbank.org/
• World Bank. (2020). World Development Report 2020: Trading for Development in the Age of Global Value Chains.
• Washington, DC: World Bank. doi:10.1596/978-1-4648-1457-0
• World Trade Organization. (2020, August 12). Trade Costs in the Time of Pandemic. Retrieved from https://www.wto.org/english/tratop_e/covid19_e/trade_costs_report_e.pdf
• World Uncertainty Index Data. (2020, July 2020). Retrieved from https://worlduncertaintyindex.com/data/