Global Supply Chains and the Great Trade Collapse: Guilty or Casualty?

Theoretical and Practical Research in Economic Fields, Vol. I, No. 1(1), pp. 27-41, Summer 2010

18 Pages Posted: 7 Apr 2011

See all articles by Hubert Escaith

Hubert Escaith

Independent; World Trade Organization (WTO)

Date Written: April 4, 2011

Abstract

Trade and industrial production have been increasingly interlinked, thanks to the vertical integration of global manufacturing through outsourcing and off-shoring. The expansion of international supply chains apparently determined an increase in trade elasticity observed since the late 1980s, and may explain also the overshooting of trade elasticity during the 2008-2009 trade collapse. After reviewing the available evidences, the article analyses the future of globalized production networks in a post-crisis scenario. In the short term, global rebalancing might prove easier than expected. Supply chains may become smaller and more regional as a result of this rebalancing. This scenario creates a challenge for labour abundant less advanced developing countries in the periphery of the large regional networks.

Keywords: global supply chains, trade, outsourcing, off-shoring, trade elasticity, internationalization of production

JEL Classification: F42, E32, F23, O24, O19, G01

Suggested Citation

Escaith, Hubert, Global Supply Chains and the Great Trade Collapse: Guilty or Casualty? (April 4, 2011). Theoretical and Practical Research in Economic Fields, Vol. I, No. 1(1), pp. 27-41, Summer 2010, Available at SSRN: https://ssrn.com/abstract=1802466

World Trade Organization (WTO) ( email )

154 Rue de Lausanne
CH-1211 Geneva 21
Switzerland
+417395426 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
131
Abstract Views
778
Rank
404,802
PlumX Metrics