Globalization Chair : Policy brief on unintended consequences of trade policies

As part of the research dynamic of the Globalization Chair, policy briefs are regularly published to shed light on specific research topics closely related to the chair’s ongoing work.

Published on 04/18/2025 17:40

Unintended Consequences of Trade Policies, Paris Trade Seminar – March 4, 2025

The Paris Trade Seminar held on March 4, 2025, at PSE featured Professor Lisandra Flach, Director of the ifo Center for International Economics, presenting research on “Demand and Supply Side Linkages in Exporting Multiproduct Firms.” This collaborative study with Carsten Eckel and Ning Meng investigates how multiproduct firms—which dominate international trade—strategically respond to antidumping duties through their internal product linkages. The results reveal that firms make complex portfolio adjustments when faced with trade restrictions, often undermining the intended protective effects of these policies. Trade policymakers should consider these interconnected dynamics when designing and implementing protective measures to avoid unintended consequences in global markets.