Trade Effects of Industrial Policies
This paper explores the effects of industrial policy on trade, focusing on the role of preferential trade agreements. The analysis uses data for the period 2012–2022 on detailed product-level bilateral trade, industrial policy announcements, and rules on subsidies in different preferential trade agreements. The introduction of a new industrial policy measure in a destination market reduces export growth to that market on average by about 0.28 percent. However, exports from fellow members of preferential trade agreements are not adversely affected and may even be positively affected if the agreements have deep disciplines on subsidies. These findings suggest that preferential trade agreements have a shielding effect against the trade distorting effects of industrial policies.
| Main Authors: | , , |
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| Format: | Working Paper biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2024-06-17
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| Subjects: | INDUSTRIAL POLICIES, TRADE, PREFERENTIAL TRADE AGREEMENTS, INDUSTRY, INNOVATION AND INFRASTRUCTURE, SDG 9, |
| Online Access: | http://documents.worldbank.org/curated/en/099310406172411550/IDU154197ea11b0ca145c81a7371f9425c7549d7 https://hdl.handle.net/10986/41726 |
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