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Global Value Chains after COVID-19: A Thematic Discussion & Resilience-Based Framework


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1 Research Scholar, Delhi School of Management, Delhi Technological University, New Delhi, India
     

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The Global Value Chains (GVCs) industry was substantially disrupted by the coronavirus crisis. Based on a review of 48 studies (2019-2022) that looked into the GVCs in the aftermath of the COVID-19 epidemic, the study recommends a resilience-based approach for restoring the GVCs post-COVID-19. The four clusters identified are: Impact of Covid-19 Crisis on GVCs; GVCs and Digital Transformation; GVCs and Governance; and Challenges and Opportunities for GVCs. Six critical aspects for improving GVCs resilience are: (1) Global Trade Transformation, (2) Regionalization/ Reshoring/Re-Localise, (3) Role of Multinational Enterprises, (4) Government Response & International Cooperation, (5) Digital Transformation, and (6) Local MSMEs Engagement. By leveraging inclusive resilience, GVCs can contribute to the evolution of a new global economic system marked by (1) Sustainable Global Value Chains, (2) Improved Global Value Chains Governance, (3) Mitigation of Demand-Supply shocks, (4) Era of Reverse Globalisation, (5) Promotion of local MSMEs and (6) Circular Economy.

Keywords

Resilience, COVID-19, Innovation, MSME, Sustainable Global Value Chain, Global Economic Order.
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  • Global Value Chains after COVID-19: A Thematic Discussion & Resilience-Based Framework

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Authors

Priyanka Aggarwal
Research Scholar, Delhi School of Management, Delhi Technological University, New Delhi, India

Abstract


The Global Value Chains (GVCs) industry was substantially disrupted by the coronavirus crisis. Based on a review of 48 studies (2019-2022) that looked into the GVCs in the aftermath of the COVID-19 epidemic, the study recommends a resilience-based approach for restoring the GVCs post-COVID-19. The four clusters identified are: Impact of Covid-19 Crisis on GVCs; GVCs and Digital Transformation; GVCs and Governance; and Challenges and Opportunities for GVCs. Six critical aspects for improving GVCs resilience are: (1) Global Trade Transformation, (2) Regionalization/ Reshoring/Re-Localise, (3) Role of Multinational Enterprises, (4) Government Response & International Cooperation, (5) Digital Transformation, and (6) Local MSMEs Engagement. By leveraging inclusive resilience, GVCs can contribute to the evolution of a new global economic system marked by (1) Sustainable Global Value Chains, (2) Improved Global Value Chains Governance, (3) Mitigation of Demand-Supply shocks, (4) Era of Reverse Globalisation, (5) Promotion of local MSMEs and (6) Circular Economy.

Keywords


Resilience, COVID-19, Innovation, MSME, Sustainable Global Value Chain, Global Economic Order.

References