The Impact of the US-China Trade War on Latin America: Evidence from Importer-Exporter Linkages

Abstract

This paper assesses the impact of the US-China trade war on multi-country importer-exporter networks in Latin America. We construct a novel dataset by matching transaction-level customs records from the Import Genius database on Mexico, Peru, Colombia and Chile from 2015 to mid-2020, which lends itself to new insights about third-country effects. Using information on the trading patterns of a firm’s first- and second-order connections, we develop link-specific measures of direct and indirect exposure to the US-China trade war. We then quantify the degree to which upstream and downstream trade shocks affect the intensive and extensive margins of trade along the supply chain.

Ebehi Iyoha
Ebehi Iyoha
PhD Candidate

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