The Impact of COVID-19 on Global Production: Evidence from Japanese Multinational Firms

Abstract

COVID-19 has had large impacts on global production and international trade. The column uses quarterly aggregate-levle data on foreign affiliates of japanes multinational corporations to show that multinational production and supply chains were negatively affected by the COVID-19 pandemic, especially in the 2nd quarter of 2020. The sales of Japanes manufacturing affiliates almost recoverd in teh 4th quarter of 2020, indicating the resilience of global production and multinationals' supply chanis. But there are large varations in recovery acress coutnries.