The Impact of COVID -19 Pandemic on Supply Chain Trade

Abstract

Global supply chains have gained importance in developing interlinkages among markets as outsourcing of production processes became widespread.  Together with the unprecedented Covid-19 crisis, the highly integrated globe encountered demand and supply shocks. As a result of the supply chain disruptions and logistical constraints, the pandemic has revealed the vulnerabilities in industrial supply chains, and both governments and enterprises have started to search for ways to build resilience, regain and improve the competitiveness and prepare for future shocks. Recently, the over-integration of the global supply chains has already being questioned and discussion of a new structurization has grown with the pandemic. In this regard, this study examines the emergence of global value chains and the growth of interdependence of economies, examplifies how any blockage in any economy can affect the other economies using the value-added trade calculations, and evaluates the expectations for the future evolution of supply chains in terms of industries and regions.