Trade fragmentation still favours west over east – BdF study
Authors says US-led bloc better placed to win over neutral states than China-aligned grouping
The fragmentation of global trade into competing blocs led by the US and China would have negative consequences for both, a new study by the Banque de France (BdF) concludes, but the western bloc would have the upper hand.
The working paper, published on January 14, simulates scenarios in which a “western” and an “eastern” bloc raise trade barriers against each other, while some economies remain neutral.
The authors, Charles Serfaty and Sebastian Stumpner, say the fragmentation would result in a
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