Riassunto analitico
We live in a world fully globalized where countries’ economies are interconnected among them. Since the 1980’s this phenomenon has intensified along with a sophistication in technology giving rise to what we now call Global Value Chains (GVCs). This dissertation will explain what are Global Value Chains, how they are designed and work and which are the main reasons that push countries to participate. Over time, trade wars, decrease in FDI, regionalization and 2008-09 crisis have caused a slowdown in GVCs growth. Covid-19 propagated at the beginning of 2020 in the framework just mentioned bringing with itself considerable consequences. So the main question of this dissertation is: what are the consequences of Covid-19 on GVCs? Everything started in Wuhan, in China, where the first cases of Coronavirus appeared. In order to avoid the contagion, part of Chinese firms was obliged to close. This choice, caused a supply shock because Chinese firms could not supply inputs or intermediate goods to the world as before. Unfortunately, Covid -19 also reached Europe, America and Africa in a few weeks and in many countries, measures of confinements were necessary. Then, the supply shock converted into a demand shock because people forced to stay home due to lockdowns, changed their needs and shopping behaviour. Moreover, a sudden surge in demand of medical goods caused many shortages in the majority of the countries. Afterwards, the focus switches on Italy, on its position in GVCs and on the consequences of Covid-19 on the already struggling Italian economy. Then there is an investigation of the sectors which have been affected the most by the pandemic and what is the contribution of European and extra European countries on the Italian import in the manufacturing sector based on WIOD tables. Finally, through a focus on medical goods, it has been possible to detect which are the medical products that Italy imports the most and which are the main global suppliers of these goods. The main findings of this dissertation prove that China, which was the heart of the pandemic, is the country impacted less by Coronavirus. Moreover, the pandemic will probably intensify the phenomenon of regionalization with a shortening in supply chains and Italy, concerning medical products, is not dependent from Extra European countries (China in particular) as expected.
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