Journal Article
Global Value Chains and U.S. Economic Activity During COVID-19
Abstract: We investigate the role of global value chains in the declines of manufacturing employment and output in the U.S. during COVID-19. Specifically, we identify the role of global value chains by exploiting heterogeneity across industries in cross-country sourcing patterns and its interaction with exogenous cross-country variation in the containment policies introduced to combat the virus. We find that global value chains played a significant role in the decline of output and employment across U.S. manufactures. Moreover, we find a modest impact of diversifying or renationalizing global value chains in mitigating the economy's exposure to foreign shocks.
Keywords: COVID-19; global value chains;
JEL Classification: F13; F14; F44;
https://doi.org/10.20955/r.103.271-88
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Bibliographic Information
Provider: Federal Reserve Bank of St. Louis
Part of Series: Review
Publication Date: 2021-05-05
Volume: 103
Issue: 3
Pages: 271-288