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Trade War and Geoeconomic Fragmentation
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Trade War and Geoeconomic Fragmentation

Juan Carluccio, Guillaume Gaulier, Gabriel Smagghue and Sebastian Stumpner
Banque de France
14/02/2025

Abstract

We present results from an analytical tool developed at Banque de France that measures the fragmentation of the world economy. The Ukraine war has reinforced a trend to trade relatively more with countries in the same geopolitical bloc and less so with those in opposing blocs. Such a “East-West divide” can be traced back to the US-China trade war of 2018.

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Published (Version of record)CC BY V4.0 Open Access
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https://www.banque-france.fr/en/publications-and-statistics/publications/trade-war-and-geoeconomic-fragmentationView
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