Show simple item record

Demand and Supply Shocks of COVID-19 and International Production Networks: Evidence from Japan’s Machinery Trade

dc.contributor.authorMitsuyo Ando
dc.date.accessioned2021-04-02T05:25:28Z
dc.date.available2021-04-02T05:25:28Z
dc.date.issued2021-03-30
dc.identifier.urihttp://hdl.handle.net/11540/13398
dc.description.abstractThis paper investigated the impacts of COVID-19 on international production networks in machinery sectors by shedding light on negative supply shocks, negative demand shocks, and positive demand shocks. Specifically, we examined changes in trade in the periods of falling trade during the first wave of COVID-19 using Japan’s machinery trade at the most disaggregated level and decomposed them into two intensive margins, i.e. the quantity effect and the price effect, and two extensive margins, i.e. the entry effect and the exit effect. Our empirical results demonstrated that i) trade relationships for parts and components are robust, and international production networks are almost intact, so far; ii) the intensive margin, mostly the negative quantity effect, induces the largest negative effects in the transport equipment sector amongst four machinery sectors; iii) positive demand shocks for specific products that are related to teleworking, disinfection, and stay-home activities partially explain sectoral differences; iv) direct negative supply shocks from China, suggested by a negative quantity effect and a positive price effect, exist in February 2020, with possible indirect negative supply shocks and substitution of source countries; and v) negative demand shocks are confirmed from negative quantity and price effects in many cases. As of October 2020, Japan’s machinery trade seems to have largely recovered. If the COVID-19 pandemic lasts long, however, prolonged negative demand shocks would hurt production networks in East Asia.
dc.languageEnglish
dc.publisherEconomic Research Institute for ASEAN and East Asia
dc.titleDemand and Supply Shocks of COVID-19 and International Production Networks: Evidence from Japan’s Machinery Trade
dc.typeDiscussion Paper
dc.subject.expertIndustry Trade
dc.subject.expertIndustrial Policy
dc.subject.expertIndustrial Investment
dc.subject.expertIndustrial Development
dc.subject.expertSmall Scale Industry
dc.subject.expertMedium Scale Industry
dc.subject.expertLocal Industry
dc.subject.expertTransport Infrastructure
dc.subject.expertTrade regulations
dc.subject.expertTelecommunications Industry
dc.subject.expertComputers
dc.subject.expertTrade data interchange
dc.subject.expertAccess to markets
dc.subject.expertE-Commerce
dc.subject.expertTrade
dc.subject.expertMerchandise Trade
dc.subject.expertTariff policies
dc.subject.expertTrade reform
dc.subject.expertForgien Direct Investment
dc.subject.expertSupply and demand shocks
dc.subject.adbSmall Scale Industry
dc.subject.adbMedium Scale Industry
dc.subject.adbLocal Industry
dc.subject.adbExport Oriented Industries
dc.subject.adbImport volume
dc.subject.adbExport volume
dc.subject.adbImports
dc.subject.adbExports
dc.subject.adbTrade Regulations
dc.subject.adbExchange Rate
dc.subject.adbEconomic zones
dc.subject.adbProtection
dc.subject.adbImports
dc.subject.adbExports
dc.subject.adbSmall and medium enterprises
dc.subject.adbSteel industry
dc.subject.naturalRural development
dc.subject.naturalUnfair competition
dc.subject.naturalSupply and demand
dc.subject.naturalEnergy policy
dc.subject.naturalDeveloping countries
dc.subject.naturalIndustrial organizations
dc.subject.naturalCreative industries
dc.subject.naturalInvestment banking
dc.subject.naturalMicrofinance
dc.subject.naturalFinancial planning industry
dc.subject.naturalInfrastructure
dc.subject.naturalManufactures
dc.subject.naturalBusiness failures
dc.subject.naturalWages and labor productivity
dc.subject.naturalMicroelectronics industry
dc.subject.naturalElectronic industries
dc.subject.naturalDigital electronics
dc.subject.naturalMicroelectronics
dc.subject.naturalElectronic commerce
dc.subject.naturalBusiness enterprises
dc.subject.naturalDigital
dc.subject.naturalInnovation
dc.subject.naturalTrade blocs
dc.subject.naturalEast-West
dc.subject.naturalExchange rates
dc.subject.naturalEconomic Zones
dc.subject.naturalValue chains
dc.subject.naturalWages and labor productivity
dc.subject.naturalEfficiency wage theory
dc.subject.naturalIncome Distribution
dc.title.seriesERIA Discussion Paper
dc.title.volumeNO. 366
dc.contributor.imprintEconomic Research Institute for ASEAN and East Asia
oar.themeIndustry
oar.themeTrade
oar.adminregionAsia and the Pacific Region
oar.countryBangladesh
oar.countryBhutan
oar.countryIndia
oar.countryMaldives
oar.countryNepal
oar.countrySri Lanka
oar.countryBrunei Darussalam
oar.countryCambodia
oar.countryIndonesia
oar.countryLao People's Democratic
oar.countryMalaysia
oar.countryMyanmar
oar.countryPhilippines
oar.countrySingapore
oar.countryThailand
oar.countryViet Nam
oar.countryCook Islands
oar.countryFiji Islands
oar.countryKiribati
oar.countryMarshall Islands
oar.countryFederated States of Micronesia
oar.countryNauru
oar.countryPalau
oar.countryPapua New Guinea
oar.countrySamoa
oar.countrySolomon Islands
oar.countryTimor-Leste
oar.countryTonga
oar.countryTuvalu
oar.countryVanuatu
oar.countryAfghanistan
oar.countryArmenia
oar.countryAzerbaijan
oar.countryGeorgia
oar.countryKazakhstan
oar.countryKyrgyz Republic
oar.countryPakistan
oar.countryTajikistan
oar.countryTurkmenistan
oar.countryUzbekistan
oar.countryPeople's Republic of China
oar.countryHong Kong
oar.countryChina
oar.countryRepublic of Korea
oar.countryMongolia
oar.countryTaipei,China
oar.identifierOAR-012755
oar.authorAndo, Mitsuyo
oar.importTRUE
oar.googlescholar.linkpresenttrue


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record