Natural Disasters and the Reshaping of Global Value Chains

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...

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Main Authors: Freund, Caroline, Mattoo, Aaditya, Mulabdic, Alen, Ruta, Michele
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
NATURAL DISASTER
GLOBAL VALUE CHAIN
TRADE
DIVERSIFICATION
OFFSHORING
RESHORING
Online Access:http://documents.worldbank.org/curated/en/293731624900715587/Natural-Disasters-and-the-Reshaping-of-Global-Value-Chains
http://hdl.handle.net/10986/35890
id okr-10986-35890
recordtype oai_dc
spelling okr-10986-358902021-07-02T05:10:56Z Natural Disasters and the Reshaping of Global Value Chains Freund, Caroline Mattoo, Aaditya Mulabdic, Alen Ruta, Michele NATURAL DISASTER GLOBAL VALUE CHAIN TRADE DIVERSIFICATION OFFSHORING RESHORING 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. 2021-07-01T14:45:12Z 2021-07-01T14:45:12Z 2021-06 Working Paper http://documents.worldbank.org/curated/en/293731624900715587/Natural-Disasters-and-the-Reshaping-of-Global-Value-Chains http://hdl.handle.net/10986/35890 English Policy Research Working Paper;No. 9719 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 East Asia and Pacific Japan
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic NATURAL DISASTER
GLOBAL VALUE CHAIN
TRADE
DIVERSIFICATION
OFFSHORING
RESHORING
spellingShingle NATURAL DISASTER
GLOBAL VALUE CHAIN
TRADE
DIVERSIFICATION
OFFSHORING
RESHORING
Freund, Caroline
Mattoo, Aaditya
Mulabdic, Alen
Ruta, Michele
Natural Disasters and the Reshaping of Global Value Chains
geographic_facet East Asia and Pacific
Japan
relation Policy Research Working Paper;No. 9719
description 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.
format Working Paper
author Freund, Caroline
Mattoo, Aaditya
Mulabdic, Alen
Ruta, Michele
author_facet Freund, Caroline
Mattoo, Aaditya
Mulabdic, Alen
Ruta, Michele
author_sort Freund, Caroline
title Natural Disasters and the Reshaping of Global Value Chains
title_short Natural Disasters and the Reshaping of Global Value Chains
title_full Natural Disasters and the Reshaping of Global Value Chains
title_fullStr Natural Disasters and the Reshaping of Global Value Chains
title_full_unstemmed Natural Disasters and the Reshaping of Global Value Chains
title_sort natural disasters and the reshaping of global value chains
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/293731624900715587/Natural-Disasters-and-the-Reshaping-of-Global-Value-Chains
http://hdl.handle.net/10986/35890
_version_ 1764484039874445312

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