Natural Disasters and the Reshaping of Global Value Chains
To understand the longer term consequences of natural disasters for global value chains, this paper examines trade in the automobile and electronic sectors after the 2011 earthquake in Japan. Contrary to widespread expectations, the analysis shows...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/293731624900715587/Natural-Disasters-and-the-Reshaping-of-Global-Value-Chains http://hdl.handle.net/10986/35890 |
| Summary: | To understand the longer term
consequences of natural disasters for global value chains,
this paper examines trade in the automobile and electronic
sectors after the 2011 earthquake in Japan. Contrary to
widespread expectations, the analysis shows that the shock
did not lead to reshoring, nearshoring, or diversification;
and trade in intermediate products was disrupted less than
trade in final goods. Imports did shift to new suppliers,
especially where dependence on Japan was greater. But
production relocated to developing countries rather than to
other top exporters. Despite important differences, the
observed pattern of switching may be relevant to disasters
like the COVID-19 pandemic. |
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