engleski

COVID-19 pandemic and global value chains: is the reconfiguration on the way?

Geographical fragmentation of the production process through outsourcing and offshoring of activities led to the international trade paradigm shift and brought global value chains to the center of development studies. This shift has led countries to compete in trade in tasks within the production process, rather than traditionally in final products, thus transforming development strategies, especially in developing countries. Demand and supply shocks inflicted on national economies worldwide caused by the COVID-19 pandemic brought unprecedented challenges to global value chains' functioning. Thus, the central debate in the global value chains field is currently focused on the pandemic's effects on potential deglobalisation, especially on further developments in global value chains. This paper provides an overview of global value chains' development and their broader economic context. The literature review shows the main opportunities and challenges that global value chains have met in the last decades and provides a comprehensive overview of the current ones. Given the rising protectionism and economic nationalism since the COVID-19 outbreak, which replaced decades of global value chains expansion period, this paper focuses on the potential further global value chains' developments and the context that will shape it.

global value chains ; COVID-19 ; globalisation ; protectionism

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