COVID-19 and Global Supply Chain Configuration: Economic and Emissions Impacts of Australia-China Trade Disruptions.

Shi, X; Cheong, TS; Zhou, M

COVID-19 and Global Supply Chain Configuration: Economic and Emissions Impacts of Australia-China Trade Disruptions.

Shi, X

Cheong, TS Zhou, M

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Publisher:: FRONTIERS MEDIA SA
Publication Type:: Journal Article
Citation:: Front Public Health, 2021, 9, pp. 752481
Issue Date:: 2021

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Field	Value	Language
dc.contributor.author	Shi, X https://orcid.org/0000-0001-9653-7395
dc.contributor.author	Cheong, TS
dc.contributor.author	Zhou, M
dc.date.accessioned	2022-05-15T21:55:13Z
dc.date.available	2021-08-25
dc.date.available	2022-05-15T21:55:13Z
dc.date.issued	2021
dc.identifier.citation	Front Public Health, 2021, 9, pp. 752481
dc.identifier.issn	2296-2565
dc.identifier.issn	2296-2565
dc.identifier.uri	http://hdl.handle.net/10453/157377
dc.description.abstract	Economic shocks from COVID-19, coupled with ongoing US-China tensions, have raised debates around supply chain (or global value chain) organisation, with China at the centre of the storm. However, quantitative studies that consider the global and economy-wide impacts of rerouting supply chains are limited. This study examines the economic and emissions impacts of reorganising supply chains, using Australia-China trade as an example. It augments the Hypothetical Extraction Method by replacing traditional Input-Output analysis with a Computable General Equilibrium analysis. The estimation results demonstrate that in both exports and imports, a trade embargo between Australia and China - despite being compensated for by alternative supply chains-will cause gross domestic production losses and emissions increases for both countries and the world overall. Moreover, even though all other economies gain from the markets left by China, many of them incur overall gross domestic production losses and emission increases. The finding that the Association of Southeast Asian Nations and India may also suffer from an Australia-China trade embargo, despite a gain in trade volume, suggests that no country should add fuel to the fire. The results suggest that countries need to defend a rules-based trading regime and jointly address supply chain challenges.
dc.format	Electronic-eCollection
dc.language	eng
dc.publisher	FRONTIERS MEDIA SA
dc.relation.ispartof	Front Public Health
dc.relation.isbasedon	10.3389/fpubh.2021.752481
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	1117 Public Health and Health Services
dc.subject.mesh	Australia
dc.subject.mesh	COVID-19
dc.subject.mesh	China
dc.subject.mesh	Commerce
dc.subject.mesh	Humans
dc.subject.mesh	SARS-CoV-2
dc.subject.mesh	Humans
dc.subject.mesh	Commerce
dc.subject.mesh	China
dc.subject.mesh	Australia
dc.subject.mesh	COVID-19
dc.subject.mesh	SARS-CoV-2
dc.title	COVID-19 and Global Supply Chain Configuration: Economic and Emissions Impacts of Australia-China Trade Disruptions.
dc.type	Journal Article
utslib.citation.volume	9
utslib.location.activity	Switzerland
utslib.for	1117 Public Health and Health Services
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/DVC (International)
pubs.organisational-group	/University of Technology Sydney/DVC (International)/Australia-China Relations Institute
utslib.copyright.status	open_access	*
dc.date.updated	2022-05-15T21:55:09Z
pubs.publication-status	Published online
pubs.volume	9

Abstract:

Economic shocks from COVID-19, coupled with ongoing US-China tensions, have raised debates around supply chain (or global value chain) organisation, with China at the centre of the storm. However, quantitative studies that consider the global and economy-wide impacts of rerouting supply chains are limited. This study examines the economic and emissions impacts of reorganising supply chains, using Australia-China trade as an example. It augments the Hypothetical Extraction Method by replacing traditional Input-Output analysis with a Computable General Equilibrium analysis. The estimation results demonstrate that in both exports and imports, a trade embargo between Australia and China - despite being compensated for by alternative supply chains-will cause gross domestic production losses and emissions increases for both countries and the world overall. Moreover, even though all other economies gain from the markets left by China, many of them incur overall gross domestic production losses and emission increases. The finding that the Association of Southeast Asian Nations and India may also suffer from an Australia-China trade embargo, despite a gain in trade volume, suggests that no country should add fuel to the fire. The results suggest that countries need to defend a rules-based trading regime and jointly address supply chain challenges.

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http://hdl.handle.net/10453/157377