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Return to Protectionism in an Agent-Based Model of International Trade

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Speaker: Christian Vezil, Université Côte d’Azur
Organizer: prof. Mattia Guerini, Università di Brescia

When: 6 ottobre 2026 dalle ore 13:30 alle ore 14:30
Where: Aula D5, sede Brixia, via San Faustino 64


We study the effects of tariffs in a two-country agent-based model of international trade with heterogeneous firms, endogenous learning, and evolving buyer–supplier relationships. We consider unilateral tariffs on intermediate inputs, final goods, and both stages simultaneously. The results show that the effects of protectionism depend crucially on where tariffs are imposed along the production chain. While tariffs may improve the protected country’s trade position, this occurs primarily through import substitution rather than a broad expansion of exports. Protection also reshapes production networks, increases firm turnover and market concentration, and has heterogeneous effects depending especially on firms’ reliance on imported inputs.

 

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