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This paper measures the heterogeneous effects of the trade war between the United States and China on Global Value Chains versus other supply chains. Using simple OLS models with fixed effects, the effects of increased trade costs through substantial tariff increases on bilateral trade with China and other key trading partners are analyzed across 11 key GVC sectors. There is some evidence that GVCs are more sensitive to tariffs than other supply chains and that firms in consolidated markets are able to internalize costs to offset export reductions. There is little evidence of trade rerouting through other key US trade partners.
Sandy, William, "When the Trade War Hits Close to Home: A GVC Analysis of the U.S-China Trade War" (2020). Economics Honors Projects. 105.
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