TY - BOOK ID - 133875366 TI - Cars in Europe: Supply Chains and Spillovers during COVID-19 Times AU - Boranova, Vizhdan. AU - Huidrom, Raju. AU - Ozturk, Ezgi. AU - Stepanyan, Ara. AU - Topalova, Petia. AU - Zhang, Shihangyin (Frank). PY - 2022 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Macroeconomics KW - Economics: General KW - Labor KW - Economic Theory KW - Diseases: Contagious KW - Industries: Automobile KW - Demand and Supply of Labor: General KW - Agriculture: Aggregate Supply and Demand Analysis KW - Prices KW - Externalities KW - Health Behavior KW - Automobiles KW - Other Transportation Equipment KW - Related Parts and Equipment KW - Economic & financial crises & disasters KW - Economics of specific sectors KW - Labour KW - income economics KW - Economic theory & philosophy KW - Infectious & contagious diseases KW - Transport industries KW - Labor supply KW - Supply shocks KW - Economic theory KW - Spillovers KW - Financial sector policy and analysis KW - COVID-19 KW - Health KW - Automobile industry KW - Economic sectors KW - Currency crises KW - Informal sector KW - Economics KW - Labor market KW - Supply and demand KW - International finance KW - Communicable diseases KW - Automobile industry and trade KW - Slovak Republic UR - https://www.unicat.be/uniCat?func=search&query=sysid:133875366 AB - The auto sector is macro-critical in many European countries and constitutes one of the main supply chains in the region. Using a multi-sector and multi-country general equilibrium model, this paper presents a quantitative assessment of the impact of global pandemic-induced labor supply shocks—both directly and via supply chains—during the initial phase of the COVID-19 pandemic on the auto sector and aggregate activity in Europe. Our results suggest that these labor supply shocks would have a significant adverse impact on the major auto producers in Europe, with one-third of the decline in the value added of the car sector attributable to spillovers via supply chains within and across borders. Within borders, the pandemic-induced labor supply shocks in the services sector have a bigger adverse impact, reflecting their larger size and associated demand effects. Across borders, spillovers from the pandemic-induced labor supply shocks that originate in other European countries are larger than those that originate outside the region, though the latter are still sizable. ER -