Cling together, swing together: the contagious effects of COVID-19 on developing countries through global value chains
Pahl, Stefan / Clara Brandi / Jakob Schwab / Frederik Stender (2020)
Discussion Paper 21/2020
This paper estimates the economic vulnerability of developing countries to disruptions in global value chains due to the COVID-19 pandemic and reveals that adverse demand-side effects reduce GDP up to 5.4 percent, and collapsing foreign supply generates a drop in GDP of a similar magnitude.