Data and code for "Changing Global Linkages: Bridging Geopolitical Fragments"

Geopolitics and trade restrictions are increasingly driving
trade and investment flows. We merge bilateral FDI and trade flows and trade
distortive measures at the industry level to study the response of FDI to
changes in trade costs. We find that, over the past decade, countries have
responded to trade restrictions imposed on their exports by moving production
abroad to nonaligned countries whose exports face few import restrictions from
their trading partners. Our findings show that FDI flows are fragmenting along
geopolitical lines but are also responding to trade restrictions by relocating
to countries that can serve as producers and `connectors'.<br>