Yoshiyuki Arata, 13 February 2019

The complex networks formed through customer–supplier relationships between firms have the potential to propagate shocks across the economy. This column explores how bankruptcy is propagated through a network of approximately one million Japanese firms. Bankruptcy propagation is observed empirically, but only very infrequently and with very limited reach. This is because the increased connectivity between firms disperses bankruptcy shocks such that they immediately die out. 

Richard Pomfret, Patricia Sourdin, 23 September 2016

Joining a customs union is supposed to reduce trade with third countries. But after 2004, the largest EU accession countries actually increased their trade with Australia, especially their exports. This column argues that new regional value chains made accession country industries more competitive, especially in the auto industry. Trade with Australia has also been facilitated by a drop in the costs of bilateral international trade.

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We invite submissions of papers and expressions of interest in attending the Second Empirical Investigations in Services Trade (EIST) conference. The meeting will take place on June 15-16 in Florence, Italy, hosted by the Global Governance Programme of the Robert Schuman Centre, European University Institute.

The theme of the conference is economic analysis of trade and investment in services. We welcome submissions related to any aspect of international trade and investment in services, including empirical analyses of sectoral policy and regulation and trade and investment agreements, analysis using firm-level data, and papers on the role of services in value chains.

Lucian Cernat, Michaël Pajot, 17 September 2012

Processing trade has been credited as a key driver of Chinese export performance but has been largely overlooked in Europe. This column argues that, despite its rather low profile in trade debates, EU inward-processing exports accounted for around 10% of total extra-EU exports in 2011. Processing trade may thus require further reflection on how best to maximise its benefits for EU's external competitiveness.

Robert Johnson, Guillermo Noguera, 22 July 2012

The internationalisation of supply chains has been revolutionising international trade and trade policy for years. This column argues that expansion of international supply chains helps explain the so-called ‘distance paradox’, i.e. the fact that geography is still a powerful shaper of trade patterns despite declines in transport costs. It also argues that trade policy has played a prominent role in driving the expansion of global supply chains.

Richard Baldwin, Daria Taglioni, 10 June 2012

Global value chains are transforming world trade patterns. This column argues that the standard gravity formulation cannot be applied to trade flows where parts and components are important. This is because GDPs in origin and destination countries are poor proxies for supply and demand for parts and components. It shows that the standard model performs poorly on such flows and suggests an alternative specification.

Hubert Escaith, Marcel Timmer, 13 May 2012

Global value chains and the international fragmentation of production challenge well-established trade policy models and raise new issues. Yet research has been hindered by the limited availability of proper statistics. This column introduces the World Input-Output Database (WIOD), a new public data source that offers unique opportunities to study the effects of fragmentation on a range of socioeconomic and environmental issues.

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