We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

The COVID-19 Pandemic and World Machinery Trade Network

The COVID-19 Pandemic and World Machinery Trade Network
Date:
16 August 2023
Category:
COVID-19, Trade
Authors:
Kozo Kiyota
Tags:
COVID-19, Trade, Centrality

Print Article:

In light of the importance of the machinery trade in global trade, this study examines whether the patterns of machinery exports changed significantly after the COVID-19 pandemic. Frameworks of network analysis and structural break analysis are applied to monthly level bilateral export data from January 2016 to March 2022. The main findings are threefold. First, positive structural change is found in exports in major machinery-exporting countries. Second, negative structural change in centrality is found in Japan and some ASEAN Member States (AMS), which implies a decline in the relative importance of these countries in the global machinery network. Third, the decline in Japanese centrality was not caused by the decline in export values or number of destination countries. Rather, it is attributable to the decline in the centrality of Japan’s export destination countries such as AMS. Noting that Japan has a relatively strong trade relationship with AMS, these results together suggest that the negative shock of the pandemic spread throughout the supply chain, which led to the decline in the relative importance of some countries – such as Japan – in the global machinery trade network.

The COVID-19 Pandemic and World Machinery Trade Network

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Related Articles

ASEAN, China, COVID-19, Trade
29 March 2021
Editor(s)/Author(s): Kozo Kiyota
Global trade is expected to suffer a significant contraction as a result of the COVID-19 pandemic. Did the relative importance of countries in the[...]
Connectivity, COVID-19, East Asia, global value chains, Japan
26 March 2021
Editor(s)/Author(s): Hongyong Zhang
Using aggregate-level data on Japanese multinational corporations (MNCs) in major host countries and regions, this paper investigates the impact[...]