Global Value Chain Resilience and Reshoring During Covid-19: Challenges in a Post-Covid World

This paper provides an overview on the evolution of Global Value Chains (GVC) and on how they were impacted by Covid-19. Evidence from recent studies on Italy shows that GVC displayed a high degree of resilience, with GVC firms better equipped to face the covid-shock and suffering less in terms of closures and turnover. Moreover, reshoring and substitution of foreign suppliers with domestic ones were chosen only by a small minority of firms. GVC will probably continue to characterize the world economy, but the uncertainty about the future developments remains high. The last part of the paper discusses the challenges and the possible GVC reconfigurations in a post-covid world.