Quantitative Analysis on Value Chain Risks in the APEC Region

Value chains are an important way of organizing economic activity in the Asia-Pacific. They are common in sectors such as electronics, textiles and clothing, and increasingly agribusiness. The essence of the value chain model is that the production process is split across a number of economies, rather than taking place in a single economy. The model is therefore necessarily network-based, rather than linear, as in traditional production models. This Report analyses Value Chain Risk, and presents some of the first quantitative evidence on its nature and extent in the Asia-Pacific along with the policy implications of the findings.