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Does the COVID-19 pandemic exacerbate the disincentive effect of trade tariffs on global value chains (GVCs) embeddedness?

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  • Chen, Lin
  • Tan, Jingrong

Abstract

This paper investigates the impact of trade tariffs on the global value chains (GVCs) embeddedness across 42 economies during the period 2007-2021. We employ empirical analysis to discern the nuanced effects of trade tariffs on GVCs embeddedness, with a focus on asymmetries between developed and developing countries and variations across industry sectors. Our findings reveal a significant dampening effect of trade tariffs on GVCs embeddedness, particularly pronounced in developing countries and the secondary industry sector. The exacerbating influence of the COVID-19 pandemic on the inhibitory relationship between trade tariffs and GVCs embeddedness is also considered, highlighting intensified effects, especially within developing countries and secondary industries.

Suggested Citation

  • Chen, Lin & Tan, Jingrong, 2024. "Does the COVID-19 pandemic exacerbate the disincentive effect of trade tariffs on global value chains (GVCs) embeddedness?," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 404-420.
    • Handle: RePEc:eee:ecanpo:v:83:y:2024:i:c:p:404-420
    DOI: 10.1016/j.eap.2024.04.033
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