Global supply chains explain trade collapse, says ECB paper
A European Central Bank paper published on January 4 says the growth in global supply chains played an important role in the trade collapse witnessed following the global economic meltdown.
The paper's authors, Carlo Altomonte, Filippo Di Mauro, Gianmarco Ottaviano, Armando Rungi and Vincent Vicard, use transaction‐level French trade data matched with ownership data for the period 2007–2009 to find evidence of a role for global value chains in explaining the magnitude of the trade collapse
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