Global Supply Chains and Trade Policy

Blanchard, Emily J. ; Bown, Chad P. ; Johnson, Robert C.

World Bank, Washington, DC

关键词: TARIFFS;    EXPORT SUPPLY;    URUGUAY ROUND;    MULTILATERAL TRADE;    WORLD TRADE ORGANIZATION;   

DOI  :  10.1596/1813-9450-7536
RP-ID  :  WPS7536

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

How do global supply chain linkagesmodify countries' incentives to impose importprotection? Are these linkages empirically importantdeterminants of trade policy? To address these questions,this paper introduces supply chain linkages into a workhorseterms-of-trade model of trade policy with political economy.Theory predicts that discretionary final goods tariffs willbe decreasing in the domestic content of foreign-producedfinal goods. Provided foreign political interests are nottoo strong, final goods tariffs will also be decreasing inthe foreign content of domestically-produced final goods.The paper tests these predictions using newly assembled dataon bilateral applied tariffs, temporary trade barriers, andvalue-added contents for 14 major economies over the1995-2009 period. There is strong support for the empiricalpredictions of the model. The results imply that globalsupply chains matter for trade policy, both in principle andin practice.