EconPapers    
Economics at your fingertips  
 

Trade Policy Uncertainty and the Structure of Supply Chains

Peter Schott, Justin Pierce (), Georg Schaur and Sebastian Heise ()
Additional contact information
Peter Schott: Yale School of Management

No 788, 2017 Meeting Papers from Society for Economic Dynamics

Abstract: We model the impact of changes in trade policy uncertainty on supply chains and show that a reduction in the probability of a trade war can foster the adoption of “Japanese”-style procurement practices, in which domestic buyers ensure the provision of high-quality inputs from foreign suppliers via long-term, just-in-time relationships. Empirically, we first show that the model provides a useful framework for analyzing shipments between U.S. importers and foreign exporters, and then demonstrate that a change in U.S. trade policy that eliminated the possibility of substantial increases in U.S. tariffs on Chinese goods coincides with a shift towards “Japanese” procurement. Our estimated general equilibrium model shows that the shift led to substantial U.S. welfare gains.

Date: 2017
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20) Track citations by RSS feed

Downloads: (external link)
https://economicdynamics.org/meetpapers/2017/paper_788.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed017:788

Access Statistics for this paper

More papers in 2017 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2021-05-17
Handle: RePEc:red:sed017:788