This paper examines how EU Technical Barriers to Trade (TBTs) reshape firms' global supply chains, extending Grossman et al. (2024) to incorporate adaptation costs between sourcing partners. To test the model's predictions, we construct a novel dataset linking EU TBTs to French firm-level import...

This paper examines how EU Technical Barriers to Trade (TBTs) reshape firms’ global supply chains, extending Grossman et al. (2024) to incorporate adaptation costs between sourcing partners. To test the model’s predictions, we construct a novel dataset linking EU TBTs to French firm-level...

This paper develops a general equilibrium Ricardian model with transaction costs to investigate the determinants of the firm's sourcing decision. It derives conditions under which different sourcing choices and corresponding trade patterns occur in general equilibrium. These conditions suggest...