Fragmentation in Global Trade: Accounting for Commodities
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Summary:
We construct a new database which covers production and trade in 136 primary commodities and 24 manufacturing and service sectors for 145 countries. Using this new more granular data, we estimate spillover effects from plausible trade fragmentation scenarios in a new multi-country, multi-sector, general-equilibrium model that accounts for unique demand and supply characteristics of commodities. The results show fragmentation-induced output losses can be sizable, especially for Low-Income-Countries, although the magnitudes vary according to the particular scenarios and modelling assumptions. Our work demonstrates that not accounting for granular commodity production and trade linkages leads to underestimation of the output losses associated with trade fragmentation.
Series:
Working Paper No. 2023/073
Frequency:
regular
English
Publication Date:
March 24, 2023
ISBN/ISSN:
9798400236563/1018-5941
Stock No:
WPIEA2023073
Pages:
35
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