Geopolitical deterioration reduced 2021 global trade by 5.3 percent, nearly canceling the 7.5 percent gain from tariff liberalization, with a one-SD alignment improvement raising bilateral trade 22 percent long-run.
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Geopolitical Barriers to Globalization
Geopolitical deterioration reduced 2021 global trade by 5.3 percent, nearly canceling the 7.5 percent gain from tariff liberalization, with a one-SD alignment improvement raising bilateral trade 22 percent long-run.