Supply Chain Disruptions, the Structure of Production Networks, and the Impact of Globalization
This paper investigates how supply chain disruptions propagate across goods and final consumers in multi-sector international production networks, focusing on how node positions and network structural features shape systemic vulnerability. We develop a parsimonious model integrating production network theory with multi-sector general equilibrium, employing analytical derivation and comparative statics. Our results show: (1) Disruption shocks exhibit a “sharp short-term, decaying long-term” dynamic; (2) Node centrality and network complexity significantly amplify global welfare losses from localized disruptions; (3) Declining transport costs reduce disruption frequency but reinforce specialization, thereby exacerbating negative spillovers from single-node failures; (4) Countries can acquire asymmetric economic influence through control over production and strategic trade quotas. The study provides a structured theoretical benchmark for assessing globalization-related risks and designing supply chain resilience policies.