Identifying Bottlenecks and Choke Points in Global Value Chains

Client/Funding Institution

Asian Development Bank (ADB)

Abstract

As globalization continues to shape production and distribution networks, understanding the vulnerabilities inherent in global value chains (GVCs) has become paramount. This is especially true given recent examples of supply chain disruptions due to the COVID-19 pandemic, accidents (e.g., the blockage in the Suez Canal), extreme weather events (e.g., floods in Thailand in 2017), natural disasters (e.g., Japanese earthquake), and geopolitical events (e.g., export bans, conflict affecting shipping in the Red Sea). This project involves the preparation of a background paper that aims to examine the resilience of GVCs by identifying potential choke points and bottlenecks that can disrupt supply chains. It does this by identifying critical nodes in supply chains where disruptions can occur due to various factors, including geopolitical tensions, natural disasters, and technological shifts. The analysis will include a specific focus on specific products or sectors that are at risk, including agriculture and sectors associated with critical minerals.

Duration

October 2024 - December 2025

wiiw team Leader

Robert Stehrer

wiiw Staff

Corinna Covi, Javier Flórez Mendoza, Oliver Reiter

Publications

Research Areas: International Trade, Competitiveness and FDI

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