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

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.