Resilience, Supply Chains and the Great Recession

25 Pages Posted: 22 Jun 2017

See all articles by Steven Brakman

Steven Brakman

University of Groningen - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Charles van Marrewijk

Utrecht University - School of Economics

Date Written: June 8, 2017

Abstract

We analyse the link between supply chains and the extent to which the Great Recession has affected national economies. Our analysis is in two steps, namely first for value added measures of supply chains and then for the Grubel-Lloyd index using gross-export data. Regarding value added measures we find, in general, no effect. Only if we separate out Europe do we find that the trough in Europe occurs about 0.17 years later and the recovery (for the countries that have recovered) about 1.55 years later. Moreover, the duration of the decline in Europe is about 4 months longer and of the recovery about 17 months longer. We explain this link and Europe’s special role using a detailed Grubel-Lloyd index applied to gross-exports as an alternative supply chain measure, which significantly affects the impact of the Great Recession regarding the timing and duration of the recovery (later and longer).

Keywords: resilience, Great Recession, supply chains

JEL Classification: E320, R110, R120

Suggested Citation

Brakman, Steven and van Marrewijk, Charles, Resilience, Supply Chains and the Great Recession (June 8, 2017). CESifo Working Paper Series No. 6505. Available at SSRN: https://ssrn.com/abstract=2990942

Steven Brakman (Contact Author)

University of Groningen - Department of Economics ( email )

P.O. Box 800
9700 AV Groningen
Netherlands
+31 50 363 3746 (Phone)
+31 50 363 3730 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Charles Van Marrewijk

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, 3584 EC
Netherlands
*31-(0)30-2539810 (Phone)

HOME PAGE: http://www.charlesvanmarrewijk.nl

Register to save articles to
your library

Register

Paper statistics

Downloads
25
Abstract Views
128
PlumX Metrics