Essays on Global Supply Chains: Methodological Developments, Policy Implications, and Distributional Effects

Caitlyn H Carrico, Purdue University

Abstract

In this thesis, I present a new multi-regional input-output (MRIO) database with bilaterally differentiated tariffs by agent. To construct the MRIO, I apply the Broad Economic Categories (BEC) system of concordances to detailed trade and tariff data from the Tariff Analytical and Simulation Tool for Economists (TASTE) Database version 9 to obtain measures of trade and tariff revenues by end-use. I use this trade data by end use to expand the GTAP Data Base version 9.2, thus incorporating direct linkages from foreign suppliers to domestic producers, investors, and consumers. Further, the new database comprises distinct composite tariff rates for producers, investors, and consumers. I use a constrained optimization procedure to ensure MRIO trade flows aggregate to the original GTAP Data Base. Through illustrative simulations, I demonstrate the effect of (1) new cross-border trade linkages and (2) tariff escalation for trade policy analysis. I further demonstrate how the addition of the tariff revenues into the MRIO enhances policy analysis beyond preceding versions. Finally, I examine the distributional effects of trade on differentiated workers in the U.S. economy, analyzing how policy changes reverberate through global supply chains.

Degree

Ph.D.

Advisors

Hertel, Purdue University.

Subject Area

Agricultural economics

COinS