Does the COVID-19 pandemic exacerbate the disincentive effect of trade tariffs on global value chains (GVCs) embeddedness?

This paper investigates the impact of trade tariffs on the global value chains (GVCs) embeddedness across 42 economies during the period 2007-2021. We employ empirical analysis to discern the nuanced effects of trade tariffs on GVCs embeddedness, with a focus on asymmetries between developed and developing countries and variations across industry sectors. Our findings reveal a significant dampening effect of trade tariffs on GVCs embeddedness, particularly pronounced in developing countries and the secondary industry sector. The exacerbating influence of the COVID-19 pandemic on the inhibitory relationship between trade tariffs and GVCs embeddedness is also considered, highlighting intensified effects, especially within developing countries and secondary industries. [ABSTRACT FROM AUTHOR]