Distribution of supply chain shock index for different world regions Sample Clauses

Distribution of supply chain shock index for different world regions. The bimodal distribution can be seen for all large regions in the world. However, in the European Union the mass of values in the lower and medium end of support is higher than for other regions. This can be explained that due to the single market and stronger export orientation countries in the European Union are more strongly interconnected, which means that these countries are more often receiving disasters happening abroad. Whereas, sectors in North America are receiving a large degree of inputs domestically, which explains the smaller mass of observation at the lower end of the support compared to the mass of observations at the higher end of the support. In Figure 2.4 the exposure of 4 different sector groups for countries in the European Union compared to sectors in all other regions is depicted. The left panel of Figure 4 shows the distribution of the SCS index for sectors in the European Union. In the right panel of Figure 4 the SCS measure for sectors in all other regions is plotted. Interestingly, the manufacturing sector is the sector, which is particularly exposed to shocks in the supply chain happening abroad. This can be explained, that intermediate goods for the manufacturing sector are traded internationally and, in the last years in particular Asian countries have significantly gained in the market share of intermediate goods production, e.g., the production of inputs for consumer electronics in China. Regarding regional differences, it can be seen that the manufacturing sector in the European Union is stronger exposed to international supply chain shocks compared to the manufacturing sector in the other regions.