Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/289146 
Year of Publication: 
2020
Citation: 
[Journal:] Review of Industrial Organization [ISSN:] 1573-7160 [Volume:] 57 [Issue:] 2 [Publisher:] Springer US [Place:] New York, NY [Year:] 2020 [Pages:] 309-331
Publisher: 
Springer US, New York, NY
Abstract: 
With global value chains interlocking today’s economies, what is the impact of diplomatic tensions on international trade? We exploit variation in monthly data on imports, a measure of imported input use in the domestic economy, and the incidence of bilateral diplomatic tensions to show that their impact on trade is heterogeneous across countries and industries. Trade in industries that are crucial for domestic production is more sensitive to political tensions. We expose the underlying mechanism in a simple framework before testing it in reduced form.
Subjects: 
Diplomatic tensions
Political relations
Trade
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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