Global Value Chains and the Removal of Trade Protection
Chad Bown (),
Aksel Erbahar and
Maurizio Zanardi ()
No WP20-3, Working Paper Series from Peterson Institute for International Economics
This paper examines how trade protection is affected by changes in the value-added content of production arising through global value chains (GVCs). Exploiting a new set of World Trade Organization (WTO) rules adopted in 1995 that impose an exogenously timed requirement for countries to reevaluate their previously imposed trade protection, we adopt an instrumental variables strategy and identify the causal effect of GVC integration on the likelihood that a trade barrier is removed. Using a newly constructed dataset of protection removal decisions involving 10 countries, 41 trading partners, and 18 industries over 1995-2013, we find that bilateral industry-specific domestic value-added growth in foreign production significantly raises the probability of removing a duty. The results are not limited to imports from China but are only found for the protection decisions of high-income countries. Back-of-the-envelope calculations indicate that rapid GVC growth in the 2000s freed almost a third of the trade flows subject to the most common temporary restrictions (i.e., antidumping) applied by high-income countries in 2006.
Keywords: global value chains; trade protection; antidumping (search for similar items in EconPapers)
JEL-codes: F13 F14 F68 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
https://www.piie.com/publications/working-papers/g ... val-trade-protection (text/html)
Working Paper: Global Value Chains and the Removal of Trade Protection (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iie:wpaper:wp20-3
Access Statistics for this paper
More papers in Working Paper Series from Peterson Institute for International Economics Contact information at EDIRC.
Bibliographic data for series maintained by Peterson Institute webmaster ().