His work tracking the Donald Trump's trade war was invaluable, making him the go-to guy for current development in trade policies. Now, Chad Bown of the Peterson Institute for International Economics has a highly informative new paper on the vaccine supply chain
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For many of us, Chad Bown of the Peterson Institute for International Economics — a boutique think tank specializing in, duh, international economics — has become the go-to guy for current developments in trade policy. His work tracking the evolution of Donald Trump’s trade war was invaluable.
Now he has a highly informative new paper with Thomas Bollyky on the vaccine supply chain. I won’t lie: There’s a lot of detail, and the paper is fairly heavy going. But it’s full of useful details, and it also, I’d argue, tells us some interesting things about the nature of world trade in the 21st century.
One thing that caught my eye — probably not the most important thing, but one close to my heart — is that the story of global vaccine production demonstrates the continuing relevance of the so-called New Trade Theory — or, as some now call it, the “old New Trade Theory.”
Producing these vaccines is evidently a complicated process, involving facilities in many locations, presumably implying a lot of cross-border shipments of vaccine ingredients. Notably, in Pfizer’s case, all these facilities are in the United States and Western Europe, which is typical across pharma firms, although other companies have a few facilities in Brazil and India.
So where do vaccine supply chains fit into the theory of international trade?
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