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Global supply chains reshaped international trade since the 1980s. Their role in explaining the trade collapse that followed the financial crisis of September 2008 was determinant. Because manufacture production is internationally fragmented, adverse external shocks affect firms not only through...
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Trade and industrial production have been increasingly interlinked, thanks to the vertical integration of global manufacturing through outsourcing and off-shoring. The expansion of international supply chains apparently determined an increase in trade elasticity observed since the late 1980s,...
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Much attention has been paid to the sharp fall in world trade associated with the economic crisis during the last … to globalisation and the fragmentation of supply chains, world trade will inevitably overshoot the shock in world GDP. We … replicate a very similar multiplier effect on world trade to that currently being experienced. Firstly, we find that, when trade …
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limiting the extent of protectionist responses. World Trade Organization discipline raises the cost of using trade policies for …
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