Measuring Exposure to Risk in Global Value Chains
How exposed are countries and sectors to GVC risks? GVC participation matters for answering this question. Standard approaches either overstate the degree of backward integration or underestimate the involvement of some industries, especially services, in Global Value Chain (GVC) activity. To c...
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okr-10986-363142022-09-06T21:30:08Z Measuring Exposure to Risk in Global Value Chains Borin, Alessandro Mancini, Michele Taglioni, Daria GLOBAL VALUE CHAIN TRADE INPUT-OUTPUT ANALYSIS INPUT-OUTPUT TABLE How exposed are countries and sectors to GVC risks? GVC participation matters for answering this question. Standard approaches either overstate the degree of backward integration or underestimate the involvement of some industries, especially services, in Global Value Chain (GVC) activity. To correct these biases, this paper proposes a novel comprehensive method to measure GVC participation using Inter-Country Input-Output (ICIO) linkages in both trade and output and shows that these improvements in methodology matter from a macroeconomic perspective. GVC integration, as measured by the indicators, decreases the exposure to domestic shocks and increases that to global shocks. The paper also finds that exposure to shocks is complex: in most countries and sectors, output is simultaneously exposed to supply and demand shocks. This two-sided exposure suggests that disruptions may not be easily managed by unilateral policy attempts at forcing a reorganization of buyers-seller relationships. 2021-09-30T12:58:55Z 2021-09-30T12:58:55Z 2021-09 Working Paper http://documents.worldbank.org/curated/undefined/476361632831927312/Countries-and-Sectors-in-Global-Value-Chains http://hdl.handle.net/10986/36314 English Policy Research Working Paper;No. 9785 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
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Digital Repository |
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Foreign Institution |
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World Bank Open Knowledge Repository |
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World Bank |
language |
English |
topic |
GLOBAL VALUE CHAIN TRADE INPUT-OUTPUT ANALYSIS INPUT-OUTPUT TABLE |
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GLOBAL VALUE CHAIN TRADE INPUT-OUTPUT ANALYSIS INPUT-OUTPUT TABLE Borin, Alessandro Mancini, Michele Taglioni, Daria Measuring Exposure to Risk in Global Value Chains |
relation |
Policy Research Working Paper;No. 9785 |
description |
How exposed are countries and sectors to GVC risks? GVC
participation matters for answering this question. Standard
approaches either overstate the degree of backward integration
or underestimate the involvement of some industries,
especially services, in Global Value Chain (GVC) activity.
To correct these biases, this paper proposes a novel comprehensive
method to measure GVC participation using
Inter-Country Input-Output (ICIO) linkages in both
trade and output and shows that these improvements in
methodology matter from a macroeconomic perspective.
GVC integration, as measured by the indicators, decreases
the exposure to domestic shocks and increases that to global
shocks. The paper also finds that exposure to shocks is complex:
in most countries and sectors, output is simultaneously
exposed to supply and demand shocks. This two-sided exposure
suggests that disruptions may not be easily managed
by unilateral policy attempts at forcing a reorganization of
buyers-seller relationships. |
format |
Working Paper |
author |
Borin, Alessandro Mancini, Michele Taglioni, Daria |
author_facet |
Borin, Alessandro Mancini, Michele Taglioni, Daria |
author_sort |
Borin, Alessandro |
title |
Measuring Exposure to Risk in Global Value Chains |
title_short |
Measuring Exposure to Risk in Global Value Chains |
title_full |
Measuring Exposure to Risk in Global Value Chains |
title_fullStr |
Measuring Exposure to Risk in Global Value Chains |
title_full_unstemmed |
Measuring Exposure to Risk in Global Value Chains |
title_sort |
measuring exposure to risk in global value chains |
publisher |
World Bank, Washington, DC |
publishDate |
2021 |
url |
http://documents.worldbank.org/curated/undefined/476361632831927312/Countries-and-Sectors-in-Global-Value-Chains http://hdl.handle.net/10986/36314 |
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1764485068900794368 |