Pandemic, Climate Mitigation, and Reshoring : Impacts of a Changing Global Economy on Trade, Incomes, and Poverty
The resilience of global value chains has been put to the test by the COVID-19 pandemic, extreme weather events, and trade tensions spurred by growing economic nationalism and protectionism. Shocks in production and trade can be transmitted from on...
| Main Authors: | , , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
Washington, DC: World Bank
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/830271646338349240/Pandemic-Climate-Mitigation-and-Reshoring-Impacts-of-a-Changing-Global-Economy-on-Trade-Incomes-and-Poverty http://hdl.handle.net/10986/37105 |
| Summary: | The resilience of global value chains
has been put to the test by the COVID-19 pandemic, extreme
weather events, and trade tensions spurred by growing
economic nationalism and protectionism. Shocks in production
and trade can be transmitted from one country to another by
global value chains, although they can also help to lessen
the blow of a domestic shock, such as a lockdown, and drive
economic recovery. What shocks to global value chains should
be anticipated in the coming years Is it possible to design
policies that can enhance resilience to trade shocks in
developing countries without endangering growth This paper
explores simulations from the ENVISAGE global computable
general equilibrium model to enhance understanding of the
potential longer-term impacts of COVID-19 and the policy
responses it engenders in developing countries. The paper
assesses the likely impacts of measures designed to reshore
production and reduce reliance on imports. It also evaluates
other key factors shaping the global economy, including
stylized scenarios to capture the essential elements of
policies to achieve carbon emission reductions that will
have an impact on trade. |
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