Federal ID: 91-6001537
ISSN: 0022-1090 (Print) | 1756-6916 (Online)
The Downstream Impact of Upstream Tariffs: Evidence from Investment Decisions in Supply Chains
Thorsten Martin and Clemens A. Otto ♦ We study how US manufacturing firms’ investment responds to tariff reductions insupplier industries. Our estimates, based on tariff reductions following multinational trade agreements, suggest that a hypothetical 10% reduction of all upstream tariffs would…