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Self-Harming Trade Policy? Protectionism and Production Networks

September 9, 2021

Kuala Lumpur Research Seminar Series

  • Using monthly data on temporary trade barriers (TTBs), we estimate the dynamic employment effects of protectionism through vertical production linkages. First, exploiting high-frequency data and TTB procedural details, we identify trade policy shocks exogenous to economic fundamentals. We then use input-output tables to construct measures of protectionism affecting downstream producers. Finally, we estimate panel local projections using the identified trade-policy shocks. Protectionism has small and insignificant beneficial effects in protected industries. The effects in downstream industries are negative, sizable, and significant. The employment decline follows an increase in intermediate-input and final goods prices, and a decline in stock market returns.

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  • Alessandro Barattieri is Associate Professor of Economics at ESG UQAM (Montreal). His research interests include international economics, macroeconomics, and finance. His articles have been published in journals such as the Journal of Financial Economics, the Journal of International Economics, and The American Economic Journal: Macro. He holds a PhD in Economics from Boston College (USA), a PhD in International Economic Law from Bocconi University (ITA), a M.Sc. in Economics from the London School of Economics (UK), and a B.A. in Economics from Bocconi University (ITA). 


  • WHEN (KUALA LUMPUR TIME): Thursday, September 9, 2021: 9:00 - 10:00am
  • WHEN (ET/WASHINGTON, D.C. TIME): Wednesday, September 8, 2021: 9:00 – 10:00pm