[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/era/wpaper/dp-2021-17.html
   My bibliography  Save this paper

The Impact of COVID-19 on Business Activities and Supply Chains in the ASEAN Member States and India

Author

Listed:
  • Keita Oikawa

    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Yasuyuki Todo

    (Waseda University, Japan)

  • Masahito Ambashi
  • Fukunari Kimura

    (Keio University, Economic Research Institute for ASEAN and East Asia (ERIA))

  • Shujiro Urata

    (Waseda University, Economic Research Institute for ASEAN and East Asia (ERIA))

Abstract
This study uncovers the impact of the coronavirus disease (COVID-19) on the business performance, outlook, and regional supply chains of manufacturing and non-manufacturing firms in the Association of Southeast Asian Nations (ASEAN) Member States and India. To address the aim, we conducted an extensive questionnaire survey via internet from November 2020 to February 2021 and received effective replies from 1,789 companies – comprising local firms, including large and small and medium-sized enterprises and multinational firms in all 11 countries. The results show vigorous private dynamism in the region. Firms’ business performance during the pandemic was distributed widely from positive to negative, and the firms that were adaptive to the COVID-19 shock – in terms of quickly arranging their supply chains – were more likely to perform well and have a better outlook. Many firms restructured their supply chains to a certain extent in response to the COVID-19 shock. Furthermore, most of the supply chain adjustments are unlikely to be reversed. The COVID-19 outbreak resulted in a number of reduced transaction links in the regional supply chains, while it delivered almost the same number of expanding transaction links. A somewhat disappointing outcome was that the least selected supply chain measure in the wake of the COVID-19 outbreak was supply chain digitalisation, which should have been an accelerator of digital transformation in the regional economy.

Suggested Citation

  • Keita Oikawa & Yasuyuki Todo & Masahito Ambashi & Fukunari Kimura & Shujiro Urata, 2021. "The Impact of COVID-19 on Business Activities and Supply Chains in the ASEAN Member States and India," Working Papers DP-2021-17, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2021-17
    as

    Download full text from publisher

    File URL: https://www.eria.org/uploads/media/discussion-papers/FY21/The-Impact-of-COVID-19-on-Business-Activities-and-Supply-Chains-in-the-ASEAN-Member-States-and-India.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brzoza-Brzezina, Michał & Makarski, Krzysztof, 2011. "Credit crunch in a small open economy," Journal of International Money and Finance, Elsevier, vol. 30(7), pages 1406-1428.
    2. Belhadi, Amine & Kamble, Sachin & Jabbour, Charbel Jose Chiappetta & Gunasekaran, Angappa & Ndubisi, Nelson Oly & Venkatesh, Mani, 2021. "Manufacturing and service supply chain resilience to the COVID-19 outbreak: Lessons learned from the automobile and airline industries," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    3. M. Ayhan Kose & Christopher Otrok & Eswar Prasad, 2012. "Global Business Cycles: Convergence Or Decoupling?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(2), pages 511-538, May.
    4. Kikuchi, Shinnosuke & Kitao, Sagiri & Mikoshiba, Minamo, 2021. "Who suffers from the COVID-19 shocks? Labor market heterogeneity and welfare consequences in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 59(C).
    5. Veronica Guerrieri & Guido Lorenzoni & Ludwig Straub & Iván Werning, 2022. "Macroeconomic Implications of COVID-19: Can Negative Supply Shocks Cause Demand Shortages?," American Economic Review, American Economic Association, vol. 112(5), pages 1437-1474, May.
    6. Kazunobu Hayakawa & Hiroshi Mukunoki, 2021. "Impacts of COVID‐19 on Global Value Chains," The Developing Economies, Institute of Developing Economies, vol. 59(2), pages 154-177, June.
    7. Jose Maria Barrero & Nicholas Bloom & Steven J. Davis, 2020. "COVID-19 Is Also a Reallocation Shock," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(2 (Summer), pages 329-383.
    8. Fukunari Kimura, 2020. "Exit Strategies for ASEAN Member States: Keeping Production Networks Alive Despite the Impending Demand Shock," Working Papers PB-2020-03, Economic Research Institute for ASEAN and East Asia (ERIA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ardiyono, Sulistiyo K., 2022. "Covid-19 pandemic, firms’ responses, and unemployment in the ASEAN-5," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 337-372.
    2. Yasuyuki Todo & Keita Oikawa & Masahito Ambashi & Fukunari Kimura & Shujiro Urata, 2021. "Robustness and Resilience of Supply Chains During the COVID-19 Pandemic: Findings from a Questionnaire Survey on the Supply Chain Links of Firms in ASEAN and India," Working Papers DP-2021-40, Economic Research Institute for ASEAN and East Asia (ERIA).
    3. Keita Oikawa & Yasuyuki Todo & Masahito Ambashi & Fukunari Kimura & Shujiro Urata, 2021. "Economic Policies to take Advantage of the Vigorous Private Dynamism in AMS and India during the COVID-19 Crisis," Working Papers PB-2021-02, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Yasuyuki Todo & Keita Oikawa & Masahito Ambashi & Fukunari Kimura & Shujiro Urata, 2023. "Robustness and resilience of supply chains during the COVID‐19 pandemic," The World Economy, Wiley Blackwell, vol. 46(6), pages 1843-1872, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Keita Oikawa & Yasuyuki Todo & Masahito Ambashi & Fukunari Kimura & Shujiro Urata, 2021. "Economic Policies to take Advantage of the Vigorous Private Dynamism in AMS and India during the COVID-19 Crisis," Working Papers PB-2021-02, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. Charles A.E. Goodhart & Dimitrios P. Tsomocos & Xuan Wang, 2023. "Support for small businesses amid COVID‐19," Economica, London School of Economics and Political Science, vol. 90(358), pages 612-652, April.
    3. Carlos Madeira, 2022. "The double impact of deep social unrest and a pandemic: Evidence from Chile," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 135-171, February.
    4. Filippos Petroulakis, 2023. "Task Content and Job Losses in the Great Lockdown," ILR Review, Cornell University, ILR School, vol. 76(3), pages 586-613, May.
    5. Mauro Bambi & Daria Ghilli & Fausto Gozzi & Marta Leocata, 2021. "Habits and demand changes after COVID-19," Papers 2107.00909, arXiv.org, revised Mar 2022.
    6. Altig, Dave & Baker, Scott & Barrero, Jose Maria & Bloom, Nicholas & Bunn, Philip & Chen, Scarlet & Davis, Steven J. & Leather, Julia & Meyer, Brent & Mihaylov, Emil & Mizen, Paul & Parker, Nicholas &, 2020. "Economic uncertainty before and during the COVID-19 pandemic," Journal of Public Economics, Elsevier, vol. 191(C).
    7. Abel Brodeur & David Gray & Anik Islam & Suraiya Bhuiyan, 2021. "A literature review of the economics of COVID‐19," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1007-1044, September.
    8. Hoshi, Takeo & Kawaguchi, Daiji & Ueda, Kenichi, 2023. "Zombies, again? The COVID-19 business support programs in Japan," Journal of Banking & Finance, Elsevier, vol. 147(C).
    9. Alejandro Fernández-Cerezo & Beatriz Gonzalez & Mario Izquierdo Peinado & Enrique Moral-Benito, 2023. "Firm-level heterogeneity in the impact of the COVID-19 pandemic," Applied Economics, Taylor & Francis Journals, vol. 55(42), pages 4946-4974, September.
    10. Kudlyak, Marianna & Faia, Ester & Shabalina, Ekaterina, 2021. "Dynamic Labor Reallocation with Heterogeneous Skills and Uninsured Idiosyncratic Risk," CEPR Discussion Papers 16008, C.E.P.R. Discussion Papers.
    11. Bambi, Mauro & Ghilli, Daria & Gozzi, Fausto & Leocata, Marta, 2024. "Habits and demand changes after COVID-19," Journal of Mathematical Economics, Elsevier, vol. 110(C).
    12. Tomaz Cajner & Leland D. Crane & Ryan A. Decker & John Grigsby & Adrian Hamins-Puertolas & Erik Hurst & Christopher Kurz & Ahu Yildirmaz, 2020. "The US Labor Market during the Beginning of the Pandemic Recession," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(2 (Summer), pages 3-33.
    13. David E. Bloom & Michael Kuhn & Klaus Prettner, 2022. "Modern Infectious Diseases: Macroeconomic Impacts and Policy Responses," Journal of Economic Literature, American Economic Association, vol. 60(1), pages 85-131, March.
    14. Meyer, Brent H. & Prescott, Brian & Sheng, Xuguang Simon, 2022. "The impact of the COVID-19 pandemic on business expectations," International Journal of Forecasting, Elsevier, vol. 38(2), pages 529-544.
    15. Laeven, Luc, 2022. "Pandemics, intermediate goods, and corporate valuation," Journal of International Money and Finance, Elsevier, vol. 120(C).
    16. Shin-ichi Fukuda, 2022. "Self-fulfilling Lockdowns in a Simple SIR-Macro Model," CIRJE F-Series CIRJE-F-1183, CIRJE, Faculty of Economics, University of Tokyo.
    17. Egana-delSol, Pablo & Micco, Alejandro, 2024. "The Role of Technological Change in the Evolution of the Employment to Output Elasticity," IZA Discussion Papers 17003, Institute of Labor Economics (IZA).
    18. L'aszl'o Czaller & GergH{o} T'oth & Bal'azs Lengyel, 2021. "Vaccine allocation to blue-collar workers," Papers 2104.04639, arXiv.org.
    19. Pierre-Olivier Gourinchas & Ṣebnem Kalemli-Özcan & Veronika Penciakova & Nick Sander, 2021. "COVID-19 and SMEs: A 2021 "Time Bomb"?," FRB Atlanta Working Paper 2021-6, Federal Reserve Bank of Atlanta.
    20. Francisco J. Buera & Roberto N. Fattal-Jaef & Hugo Hopenhayn & P. Andres Neumeyer & Yongseok Shin, 2021. "The Economic Ripple Effects of COVID-19," NBER Working Papers 28704, National Bureau of Economic Research, Inc.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:era:wpaper:dp-2021-17. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ranti Amelia (email available below). General contact details of provider: https://edirc.repec.org/data/eriadid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.