Global Supply Chains and Trade Policy Responses to the 2008 Crisis

The collapse in trade and the contraction of output that occurred during 2008–9 was comparable to, and in many countries more severe than, the Great Depression of the 1930s. However, it did not give rise to the rampant protectionism that followed the Great Crash. The idea that the rise in the fragme...

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Main Authors:	Gawande, Kishore, Hoekman, Bernard, Cui, Yue
Format:	Journal Article
Language:	en_US
Published:	Oxford University Press on behalf of the World Bank 2016
Subjects:	volatility trade policy export promotion export competitiveness trade activitism
Online Access:	http://hdl.handle.net/10986/24605

id	okr-10986-24605
recordtype	oai_dc
spelling	okr-10986-246052021-04-23T14:04:23Z Global Supply Chains and Trade Policy Responses to the 2008 Crisis Gawande, Kishore Hoekman, Bernard Cui, Yue volatility trade policy export promotion export competitiveness trade activitism The collapse in trade and the contraction of output that occurred during 2008–9 was comparable to, and in many countries more severe than, the Great Depression of the 1930s. However, it did not give rise to the rampant protectionism that followed the Great Crash. The idea that the rise in the fragmentation of production across global value chains – vertical specialization – may be a deterrent against protectionism is underappreciated in the literature. Institutions also played a role in limiting the extent of protectionist responses. World Trade Organization discipline raises the cost of using trade policies for member countries and has proved to be a stable foundation for the open multilateral trading system that has been built over the past 50 years. Using trade and protection data for seven large emerging market countries that have a history of active use of trade policy, the influence of these and other factors on trade policy responses to the 2008 crisis are empirically examined. An instrumental variables strategy is used to identify their impact. Participation in global value chains is found to be a powerful economic factor determining trade policy responses. 2016-07-05T18:15:00Z 2016-07-05T18:15:00Z 2015-01 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/24605 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research Argentina Brazil China India Mexico South Africa Turkey
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	volatility trade policy export promotion export competitiveness trade activitism
spellingShingle	volatility trade policy export promotion export competitiveness trade activitism Gawande, Kishore Hoekman, Bernard Cui, Yue Global Supply Chains and Trade Policy Responses to the 2008 Crisis
geographic_facet	Argentina Brazil China India Mexico South Africa Turkey
description	The collapse in trade and the contraction of output that occurred during 2008–9 was comparable to, and in many countries more severe than, the Great Depression of the 1930s. However, it did not give rise to the rampant protectionism that followed the Great Crash. The idea that the rise in the fragmentation of production across global value chains – vertical specialization – may be a deterrent against protectionism is underappreciated in the literature. Institutions also played a role in limiting the extent of protectionist responses. World Trade Organization discipline raises the cost of using trade policies for member countries and has proved to be a stable foundation for the open multilateral trading system that has been built over the past 50 years. Using trade and protection data for seven large emerging market countries that have a history of active use of trade policy, the influence of these and other factors on trade policy responses to the 2008 crisis are empirically examined. An instrumental variables strategy is used to identify their impact. Participation in global value chains is found to be a powerful economic factor determining trade policy responses.
format	Journal Article
author	Gawande, Kishore Hoekman, Bernard Cui, Yue
author_facet	Gawande, Kishore Hoekman, Bernard Cui, Yue
author_sort	Gawande, Kishore
title	Global Supply Chains and Trade Policy Responses to the 2008 Crisis
title_short	Global Supply Chains and Trade Policy Responses to the 2008 Crisis
title_full	Global Supply Chains and Trade Policy Responses to the 2008 Crisis
title_fullStr	Global Supply Chains and Trade Policy Responses to the 2008 Crisis
title_full_unstemmed	Global Supply Chains and Trade Policy Responses to the 2008 Crisis
title_sort	global supply chains and trade policy responses to the 2008 crisis
publisher	Oxford University Press on behalf of the World Bank
publishDate	2016
url	http://hdl.handle.net/10986/24605
_version_	1764457167034777600

Global Supply Chains and Trade Policy Responses to the 2008 Crisis

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