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The Impact of the COVID-19 Pandemic on China's Manufacturing Sector: A Global Value Chain Perspective

This paper, based on the notion of Trade in Value Added (TiVA), combines the global trade analysis project (GTAP) model with the value-added model in seeking to simulate and assess the impact of the COVID-19 pandemic on China's manufacturing sector in global value chain (GVC) reconfiguration. T...

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Detalles Bibliográficos
Autores principales: Song, Yuegang, Hao, Xiazhen, Hu, Yilin, Lu, Zhou
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8160105/
https://www.ncbi.nlm.nih.gov/pubmed/34055731
http://dx.doi.org/10.3389/fpubh.2021.683821
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author Song, Yuegang
Hao, Xiazhen
Hu, Yilin
Lu, Zhou
author_facet Song, Yuegang
Hao, Xiazhen
Hu, Yilin
Lu, Zhou
author_sort Song, Yuegang
collection PubMed
description This paper, based on the notion of Trade in Value Added (TiVA), combines the global trade analysis project (GTAP) model with the value-added model in seeking to simulate and assess the impact of the COVID-19 pandemic on China's manufacturing sector in global value chain (GVC) reconfiguration. The empirical study provides three major results. First, at the macroeconomic level, the pandemic wreaks a negative impact on all the economies, including the U.S., in regard to import & export trade, GDP and social welfare policy. Second, nation-level simulation shows that there's a remarkable disparity across different pandemic scenarios in the level of division of labor and of GVC participation for China and its trade partners. Third, sector-level analysis shows that the impacts of the pandemic include promoting the level of GVC participation and of labor division in China's manufacturing sector (electromechanical equipment and computer goods). This paper also provides policy advice for Chinese government: participation in higher-end GVCs, introduction of further structural reforms and retention of foreign investors, and active responses to GVC reconfiguration and cross-border capital flow.
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spelling pubmed-81601052021-05-29 The Impact of the COVID-19 Pandemic on China's Manufacturing Sector: A Global Value Chain Perspective Song, Yuegang Hao, Xiazhen Hu, Yilin Lu, Zhou Front Public Health Public Health This paper, based on the notion of Trade in Value Added (TiVA), combines the global trade analysis project (GTAP) model with the value-added model in seeking to simulate and assess the impact of the COVID-19 pandemic on China's manufacturing sector in global value chain (GVC) reconfiguration. The empirical study provides three major results. First, at the macroeconomic level, the pandemic wreaks a negative impact on all the economies, including the U.S., in regard to import & export trade, GDP and social welfare policy. Second, nation-level simulation shows that there's a remarkable disparity across different pandemic scenarios in the level of division of labor and of GVC participation for China and its trade partners. Third, sector-level analysis shows that the impacts of the pandemic include promoting the level of GVC participation and of labor division in China's manufacturing sector (electromechanical equipment and computer goods). This paper also provides policy advice for Chinese government: participation in higher-end GVCs, introduction of further structural reforms and retention of foreign investors, and active responses to GVC reconfiguration and cross-border capital flow. Frontiers Media S.A. 2021-05-14 /pmc/articles/PMC8160105/ /pubmed/34055731 http://dx.doi.org/10.3389/fpubh.2021.683821 Text en Copyright © 2021 Song, Hao, Hu and Lu. https://creativecommons.org/licenses/by/4.0/This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Public Health
Song, Yuegang
Hao, Xiazhen
Hu, Yilin
Lu, Zhou
The Impact of the COVID-19 Pandemic on China's Manufacturing Sector: A Global Value Chain Perspective
title The Impact of the COVID-19 Pandemic on China's Manufacturing Sector: A Global Value Chain Perspective
title_full The Impact of the COVID-19 Pandemic on China's Manufacturing Sector: A Global Value Chain Perspective
title_fullStr The Impact of the COVID-19 Pandemic on China's Manufacturing Sector: A Global Value Chain Perspective
title_full_unstemmed The Impact of the COVID-19 Pandemic on China's Manufacturing Sector: A Global Value Chain Perspective
title_short The Impact of the COVID-19 Pandemic on China's Manufacturing Sector: A Global Value Chain Perspective
title_sort impact of the covid-19 pandemic on china's manufacturing sector: a global value chain perspective
topic Public Health
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8160105/
https://www.ncbi.nlm.nih.gov/pubmed/34055731
http://dx.doi.org/10.3389/fpubh.2021.683821
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