Trade wars, industrial policy, and myriad other supply chain disruptions have fast become the 'new normal'. Yet, given the highly opaque and complex nature of production processes, knowing how to navigate this rise of deglobalisation is a daunting task. This column introduces a tool that harnesses the power of frontier AI tools to recover input-output relationships across over 5,000 traded products. The findings highlight the usefulness for AI to help build data products that are suitable for understanding networks in global trade. By mapping production networks at a granular level, policymakers can better anticipate the impacts of trade policies and supply chain disruptions.
Bennet Feld, Thiemo Fetzer, Prashant Garg and Peter Lambert
24 December 2024
Vox EU
https://cepr.org/voxeu/columns/leveraging-ai-navigate-deglobalisation
This work is published under POID and the CEP's Growth programme.