The impact of recent crises on Global Value Chains have highlighted the fragility of countries being embedded in international trade. For instance, many countries experienced shortages and delays in manufacturing products during the COVID19 pandemic.
In this seminar, I will present two perspectives on how the volume of trade can be utilised to gain a nuanced understanding of the roles regions play in international trade. First, I will first explain why it is essential to consider trade volumes for measuring the brokerage role of European sub-national regions in production networks. Then, to do so I propose the Weighted-Normalized Gould-Fernandez measure (WNGF) to account for weighted edges on an extended local brokerage approach.
Second, I use an economic approach to model how much of manufacturing production is reliant on international trade. This model finds that being more embedded in Global Value Chains worsened regional growth during the Global Financial Crisis and it led to higher growth in the long run.
A Centre for Complexity Science Seminar.