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...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2021-05-01
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| Series: | Frontiers in Public Health |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fpubh.2021.683821/full |
| _version_ | 1818572691698876416 |
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| author | Yuegang Song Xiazhen Hao Yilin Hu Zhou Lu |
| author_facet | Yuegang Song Xiazhen Hao Yilin Hu Zhou Lu |
| author_sort | Yuegang Song |
| collection | DOAJ |
| 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. |
| first_indexed | 2024-12-15T00:01:00Z |
| format | Article |
| id | doaj.art-3cabbe2f05db4005a967799354c7e49e |
| institution | Directory Open Access Journal |
| issn | 2296-2565 |
| language | English |
| last_indexed | 2024-12-15T00:01:00Z |
| publishDate | 2021-05-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Public Health |
| spelling | doaj.art-3cabbe2f05db4005a967799354c7e49e2022-12-21T22:42:54ZengFrontiers Media S.A.Frontiers in Public Health2296-25652021-05-01910.3389/fpubh.2021.683821683821The Impact of the COVID-19 Pandemic on China's Manufacturing Sector: A Global Value Chain PerspectiveYuegang Song0Xiazhen Hao1Yilin Hu2Zhou Lu3School of Business, Henan Normal University, Xinxiang, ChinaSchool of Business, Henan Normal University, Xinxiang, ChinaNPD Information Consulting (Shanghai) Co., Ltd., Shanghai, ChinaSchool of Economics, Tianjin University of Commerce, Tianjin, ChinaThis 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.https://www.frontiersin.org/articles/10.3389/fpubh.2021.683821/fullCOVID-19 pandemicGVC reconfiguraitonGTAP modelmanufacturing sectorChina |
| spellingShingle | Yuegang Song Xiazhen Hao Yilin Hu Zhou Lu The Impact of the COVID-19 Pandemic on China's Manufacturing Sector: A Global Value Chain Perspective Frontiers in Public Health COVID-19 pandemic GVC reconfiguraiton GTAP model manufacturing sector China |
| 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 | COVID-19 pandemic GVC reconfiguraiton GTAP model manufacturing sector China |
| url | https://www.frontiersin.org/articles/10.3389/fpubh.2021.683821/full |
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