A Risk Analysis on the Network Concentration of Global Supply Chains
In this paper, we present new referential statistics for supply chain exposure to concentration risk of global production networks. The study’s net contribution rests on the development of a metric that indicates exposure risk in terms of the frequency of supply chain engagement with the regions of analytical concern, alongside the traditional approach based on volume measures of value-added concentration. Japan, a country with a high propensity to encounter natural hazards, and China, under mounting geopolitical tension with the United States, are chosen as the target regions for risk assessment. In addition, the highly asymmetric structure of mutual economic dependency in the US-China relations is identified