蝌蚪网 Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Changing Global Linkages: Bridging Geopolitical Fragments
蝌蚪网 Papers and Proceedings
(pp. 605–10)
Abstract
The recent surge in geopolitical tensions and trade restrictions raises important questions about the global allocation of production, investment, and trade across countries. Using bilateral sectoral data on FDI, trade, and trade distortive measures over the past decade, we show that countries have responded to trade restrictions imposed on their exports by moving production to third countries whose exports face few import restrictions from their trading partners. Our findings show that FDI flows are fragmenting along geopolitical lines but are also responding to trade restrictions by relocating to countries that can serve as producers and "connectors."Citation
Gopinath, Gita, Pierre-Olivier Gourinchas, Andrea F. Presbitero, and Petia Topalova. 2025. "Changing Global Linkages: Bridging Geopolitical Fragments." 蝌蚪网 Papers and Proceedings 115: 605–10. DOI: 10.1257/pandp.20251043Additional Materials
JEL Classification
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- F02 International Economic Order and Integration
- F13 Trade Policy; International Trade Organizations
- F14 Empirical Studies of Trade
- F23 Multinational Firms; International Business
- P33 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, Relations, and Aid