The Covid-19 Pandemic and the Future of Global Value Chains (GVCs)

Abstract

The Covid-19 pandemic has shown the importance of a better understanding of GVCs in relation to epidemic outbreaks. The literature also mentions that there is now an opportunity for building inclusive and sustainable GVCs. This rapid review synthesises the literature from academic, policy, knowledge and business institution sources on the discourse on reshaping Global Value Chains (GVCs) as a result of the current Covid-19 pandemic and how GVC support programmes might have to adapt to the “new normal”. This review concludes that lead firms in GVCs could decide to diversify suppliers, reshore (near-shore) production closer to demand or intensify linkages with existing suppliers.