Cling Together, Swing Together: The Contagious Effects of COVID-19 on Developing Countries through Global Value Chains

Author
Stefan Pahl, Clara Brandi, Jakob Schwab, Frederik Stender
Content Type
Working Paper
Institution
German Development Institute (DIE)
Abstract
This paper estimates the economic vulnerability of developing countries to disruptions in global value chains due to the COVID-19 pandemic and reveals that adverse demand-side effects reduce GDP up to 5.4 percent, and collapsing foreign supply generates a drop in GDP of a similar magnitude.
Topic
Developing World, GDP, Economy, Global Value Chains, COVID-19
Political Geography
Global Focus