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New Dynamics of Global Supply Chains and Implications for Productivity

In the aftermath of the COVID-19 pandemic and increasing tensions in the geopolitical landscape, the global supply chains (GSCs) have been drastically reshaped. Some evidence reveal that manufacturers worldwide are reducing their dependence on existing providers and rethinking sourcing strategies by diversifying supply chain networks or relocating manufacturing sites closer to suppliers.

With supply network relocation and multiple sourcing strategies, some global manufacturers have shifted their production sites. The questions of whether this business strategy has positive impacts on company productivity, the new GSC dynamics benefit new host countries, and new hosts have sufficient absorptive capacity to benefit from technological spillover effects need for further scrutiny.

This research looks into these aspects by estimating the impact of new global supply chain (GSC) dynamics on productivity, exploring case studies of GSC diversification and relocation, and drawing implications for business and policymaking.

For details, please contact our economist:

Dr. Muhammad Daaniyall Abd Rahman
Senior Economist

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