Tuesday, 19 February 2019

Trade and growth in the age of global value chains

a column by Carlo Altomonte, Laura Bonacorsi and Italo Colantone for VOX: CEPR’s Policy Portal

Amid Brexit and protectionist moves by President Trump, many observers are warning about the negative effects that a rise in trade barriers could have on growth.

This column first highlights the important role acquired by deep-water ports as main hubs for trade during 1995-2007 and how they have allowed countries to gain from trade.

It then shows that becoming embedded in global value chains is a powerful determinant of growth, even if it implies that a growing share of gross exports represents value added that has been produced in foreign countries.

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