Publication: Is 3D Printing a Threat to Global Trade? The Trade Effects You Didn't Hear About
Date
2019-09
ISSN
Published
2019-09
Author(s)
Abstract
In the mid-2000s, the production of
hearing aids shifted almost entirely to 3D printing. Using
difference-in-differences and synthetic control methods,
this paper examines the effects of this shift on trade
flows. The analysis finds that trade increased roughly 60
percent following the introduction of 3D printing. Revealed
comparative advantage was reinforced, with exports growing
most rapidly for middle- and high-income countries. The
analysis also finds that developing countries increased
their imports of hearing aids as a result of the innovation,
benefitting consumers. As a robustness check, the paper
examines 35 products that are partially 3D printed and finds
positive and significant effects on trade. The results
counter widespread views that 3D printing will shorten
supply chains and reduce trade.
Citation
“Freund, Caroline; Mulabdic, Alen; Ruta, Michele. 2019. Is 3D Printing a Threat to Global Trade? The Trade Effects You Didn't Hear About; Is 3D Printing a Threat to Global Trade? The Trade Effects you Didn't Hear About. Policy Research Working Paper;No. 9024. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/32453 License: CC BY 3.0 IGO.”
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