Ripple effects in regional value chains

Evidence from an episode of the US–China trade war

Bibliographic Data

ID21543542
AuthorsKazunobu Hayakawa (0000-0003-0032-9060, Bangkok Research Center Institute of Developing Economies Pathumwan Thailand), Ju Hyun Pyun (0000-0001-6815-3976, Korea University Business School Seoul South Korea, corresponding author), Nobuaki Yamashita (0000-0002-8250-5293, Centre for Transformative Innovation Swinburne University of Technology Hawthorn Victoria Australia), Chih‐hai Yang (0000-0002-1004-597X, Department of Economics National Central University Taoyuan Taiwan)
Year2024
Volume47
Issue3
Pages880-897
Publication date2024-03-01
Open AccessYes
TypeARTICLE
VenueWorld Economy (JOURNAL)
Journal identifiersISSN: 0378-5920 • E-ISSN: 1467-9701
PublisherWiley (PUBLISHER • GB)
DOI10.1111/twec.13444
OpenAlexW4378835154
LanguageEN
Citations received8
References cited40

This study empirically examines the ripple effect of demand shocks on upstream suppliers in regional value chains. Specifically, we investigate how changes in US imports from China alter China's imports of intermediate inputs in machinery industries from Japan, South Korea and Taiwan. The analysis of China's monthly imports from the three supplier economies during 2018–2019 finds that the decrease in China's output exports to the US caused by the Trump tariffs reduced China's input imports from supplier economies. Also, this adverse ripple effect was the most significant in Taiwan, where multinational enterprises use China as an export platform

China · Comparative advantage · Economics · Geography · Global value chain · International economics · International trade · Multinational corporation · Ripple · Trade war · Firm Innovation and Growth · Global trade and economics · Global trade, sustainability, and social impact

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Open DOIOpen Access