Discussion Paper

Understanding Trade Fragmentation


Abstract: A large empirical literature, including Gopinath et al. (2025), finds that geopolitical distance has become an increasingly important determinant of bilateral trade flows. This work has fueled debate about the consequences of fragmentation and the extent to which global value chains are being reshaped.

https://doi.org/10.17016/2380-7172.3960

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Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2025-12-12

Number: 2025-12-12