networks. In this paper we incorporate production barriers induced by COVID-19 shock into a Ricardian model with sectoral … shock has a considerable impact on most economies in the world, especially when a share of the labor force is quarantined …. Moreover, we show that global production linkages have a clear role in magnifying the effect of the production shock. Finally …

with input-output linkages to gauge the effects of this adverse supply shock in China on the global economy through … countries even gain from the shock due to trade diversion. As a key methodological contribution, we quantify the role of GVCs … (in contrast to final goods trade) in transmitting the shock. In a hypothetical world without GVCs, the welfare loss due …

). Training does not increase. The evidence shows that a temporary shock induces persistent effects: firm restructuring scars …