IMF Working Papers

Fragmentation in Global Trade: Accounting for Commodities

By Marijn A. Bolhuis, Jiaqian Chen, Benjamin R Kett

March 24, 2023

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Marijn A. Bolhuis, Jiaqian Chen, and Benjamin R Kett. Fragmentation in Global Trade: Accounting for Commodities, (USA: International Monetary Fund, 2023) accessed November 21, 2024

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Summary

We construct a new database which covers production and trade in 136 primary commodities and 24 manufacturing and service sectors for 145 countries. Using this new more granular data, we estimate spillover effects from plausible trade fragmentation scenarios in a new multi-country, multi-sector, general-equilibrium model that accounts for unique demand and supply characteristics of commodities. The results show fragmentation-induced output losses can be sizable, especially for Low-Income-Countries, although the magnitudes vary according to the particular scenarios and modelling assumptions. Our work demonstrates that not accounting for granular commodity production and trade linkages leads to underestimation of the output losses associated with trade fragmentation.

Keywords: Commodities, Fragmentation, International trade, Sanctions, Spillovers

Publication Details

  • Pages:

    35

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2023/073

  • Stock No:

    WPIEA2023073

  • ISBN:

    9798400236563

  • ISSN:

    1018-5941