Richard Baldwin, 27 November 2009

World trade experienced a sudden, severe and synchronised collapse in late 2008 – the sharpest in recorded history and deepest since WWII. VoxEU today posts a new Ebook – written for the world's trade ministers gathering for the WTO's Trade Ministerial in Geneva – that presents the economics profession's received wisdom on the collapse. Two dozen chapters, written by leading economists from across the planet, summarise the latest research on the causes of the collapse as well as the consequences and prospects for recovery.

Carlo Altomonte, Gianmarco Ottaviano, 27 November 2009

The precise role of supply chains in the trade collapse is an unsettled matter. This chapter marshals evidence behind the notion that trade within international supply chains has been more resilient than other trade during the great trade collapse.

Rudolfs Bems, Robert Johnson, Kei-Mu Yi, 27 November 2009

International supply chains – or vertical linkages – are a leading contender for explaining why the great trade collapse was so great. This chapter presents research aimed at quantifying the consequences of intermediate goods import linkages for the transmission of shocks and declines in trade. It highlights the importance of vertical linkages and specific sectoral shocks in accounting for the sudden, severe, and synchronised collapse of global trade in the aftermath of the Lehman debacle.

Kiyoyasu Tanaka, 27 November 2009

Japan’s trade was particularly hard hit by the great trade collapse. This chapter marshals evidence for the idea that Japan’s extensive involvement in international supply chains was a major reason for its larger and faster than average trade collapse.

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