Supply chain disruptions are routinely blamed for things ranging from elevated inflation to shortages of medical equipment in the pandemic. But how should exposure to foreign supply chains be measured? Using a global input-output database, this column shows that the full exposure of US manufacturing to foreign suppliers (especially China) is much larger than face value measures indicate. Moreover, it argues that the big change in supply chain disruptions in recent years stems from changes in the nature of the shocks (from idiosyncratic to systemic), not the nature of the supply chains.

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29 November 2023

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Vox EU

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https://cepr.org/voxeu/columns/supply-chain-disruptions-shocks-links-and-hidden-exposure

This Blog is published under the centre's Trade programme.

This publication comes under the following theme: Trade Policy and barriers to international economic integration