Michele Ruta’s research while affiliated with International Monetary Fund and other places

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Publications (160)


Nowcasting Global Trade from Space
  • Article

May 2025

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10 Reads

IMF Working Paper

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Seung Mo Choi

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Parisa Kamali

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[...]

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We introduce a nowcasting model of global maritime trade, leveraging satellite-based big data on vessel movements. This provides a timely indicator of global trade as shipping accounts for about 80 percent of worldwide merchandise trade by volume. Our approach mimics key features of the way statisticians compile trade data—measuring the customs value of imported and exported goods first, forming import and export price deflators, and then estimating import and export volumes. We show how global and regional nowcasts can be obtained using port-level data from IMF PortWatch and highlight important enhancements to the platform since its beta launch in November 2023. Finally, we demonstrate how the monthly nowcasts can be used to monitor fragmentation and regionalization in global maritime trade.


Shifting Advantages

April 2025

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2 Reads

IMF Working Paper

Industrial policies have been on the rise with subsidies provided to firms accounting for the lion’s share of interventions. The effects of these measures on productivity, trade, investment and other economic and non-economic variables are largely an open question. This paper examines empirically the link between subsidies and inward cross-border investment using data on greenfield investments across a large sample of advanced and emerging economies between 2010 and 2020. Employing a difference-in-difference approach, we find that—while the average effect of all subsidies is zero—financial subsidies, such as loans and loan guarantees, increase new cross-border investment projects by an average of 7%. These effects are primarily driven by capital-intensive sectors in capital-abundant countries, suggesting that subsidies can affect foreign direct investment—but they reinforce (rather than reshape) countries’ comparative advantage.




Mentions of Industrial policy in the major business press. Source: Factiva and authors' calculations. [Colour figure can be viewed at wileyonlinelibrary.com]
New industrial policy in AEs and EMDEs. [Colour figure can be viewed at wileyonlinelibrary.com]
Trade distortive industrial policy tools in 2023 by income group. [Colour figure can be viewed at wileyonlinelibrary.com]
Trade distortive industrial policies by sector. Cumulative stock of measures. For measures covering multiple sectors, each sector is given equal weight. [Colour figure can be viewed at wileyonlinelibrary.com]
Trade distortive industrial policies with stated motivation. Cumulative stock of measures. For measures with multiple motives, each motive is given equal weight. [Colour figure can be viewed at wileyonlinelibrary.com]

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The return of industrial policy in data
  • Article
  • Full-text available

July 2024

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55 Reads

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58 Citations

This paper introduces the New Industrial Policy Observatory (NIPO) data set and documents emergent patterns of policy intervention during 2023 associated with the return of industrial policy. The data show that the recent wave of new industrial policy activity is primarily driven by advanced economies and that subsidies are the most employed instrument. Trade restrictions on imports and exports are more frequently used by emerging market and developing economies. Strategic competitiveness is the dominant motive governments give for these measures, but other objectives such as climate change, resilience and national security are on the rise. In exploratory regressions, we find that implemented measures are correlated with the past use of measures by other governments in the same sector, pointing to the tit‐for‐tat nature of industrial policy. Furthermore, domestic political economy factors and macroeconomic conditions correlate with the use of industrial policy measures. We intend for the NIPO to be a publicly available resource to help monitor the evolution and effects of industrial policies.

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The Effectiveness of Environmental Provisions in Regional Trade Agreements

March 2024

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33 Reads

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12 Citations

Journal of the European Economic Association

Trade liberalization can spur environmental degradation. Concerns over these adverse impacts have led to a debate over the need for environmental provisions in regional trade agreements (RTAs), however the effectiveness of such provisions is unknown. In this paper, we provide new plausibly causal evidence that environmental provisions are effective in limiting deforestation following the entry into force of RTAs. We exploit high-resolution, satellite-derived estimates of deforestation and identify the content of RTAs using a new dataset with detailed information on individual provisions. Accounting for the potential endogeneity of environmental provisions in RTAs, we find that the inclusion of specific provisions aimed at protecting forests and/or biodiversity almost entirely offsets the net increases in forest loss observed in similar RTAs without such provisions. The effects are particularly strong in tropical, developing countries with greater biodiversity. The inclusion of these provisions limits agricultural expansion and agricultural trade.




Citations (78)


... Multiregional input-output models (MRIO) have been widely used in the recent literature to assess the economic, environmental and social impacts of production through international trade (see Wang et al. (2019) for a review). These models show unique characteristics that trace those impacts from the origin of production to its destination throughout the GVCs of every product in every country and at every production stage (Inomata, 2019). Recently, the MRIO framework has also been used in the analysis of GVC breakdowns or restructuring resulting from Brexit or the COVID-19 pandemic (Chen et al., 2018;Giammetti, 2020;Guan et al., 2020) and to assess improvements in GVC resilience (Kitsos et al., 2019). ...

Reference:

Consequences of legislation-based reshoring for EU carbon emissions in global value chains
Global Value Chain Development Report 2017: Measuring and Analyzing the Impact of GVCs on Economic Development

... For example, after considering the value-added portion of US imports from third countries to China, the share of US imports from China increased from 21.6% in 2017 to 23.3% in 2021 (Ma and Ning 2024). There are also studies suggesting that the US China trade war has enabled third-party countries to gain scale and efficiency and expand their exports, but there is little evidence to suggest that countries that vote in line with the United States at the United Nations have significantly reduced trade with China (Freund et al. 2024). ...

Is US trade policy reshaping global supply chains?
  • Citing Article
  • October 2024

Journal of International Economics

... Using the Global Trade Alert database, Juhász et al. (2022), defining industrial policy as measures intended to transform/shape the composition of economic activity, estimate that some 40-45% of all trade-related measures implemented by G20 countries since 2009 constitute industrial policies. 3 Evenett et al. (2024) show that much of the industrial policy activity is undertaken by high-income countries and often involves subsidies. Developing countries in contrast tend to use traditional trade measures (Figure 1), a difference Evenett et al. attribute to fiscal capacity constraints. ...

The return of industrial policy in data

... In Kenya, tax revenue is predisposed by complex institutional and structural factors, both economic, governance, and regulatory [11]. The identified reasons are crucial for enhancing tax collection to reduce budget deficits [12]. It is so complex, with the highly contextual relationship between agriculture share, per capita income, trade openness, and inflation to tax revenue. ...

Fiscal Revenue Mobilization and Digitally Traded Products: Taxing at the Border or Behind It?
  • Citing Article
  • June 2024

Journal of Policy Modeling

... Countries worldwide have been increasingly signing different types of PTAs, which have also become increasingly complex and deep in their content (Kohl et al., 2016;Hofmann et al., 2019;Mattoo et al., 2020). 1 These deep PTAs cover not just trade but also provisions on additional policy areas such as IPRs protection, competition policy, trade-related investment measures, public procurement, e-commerce, service liberalization, the environment, or investment and labor flows. These trade-related issues aim at deepening integration beyond trade, and IPRs are one of the most common policy areas covered by deep PTAs (Mattoo et al., 2020). ...

Overview: The Evolution of Deep Trade Agreements
  • Citing Chapter
  • October 2020

... The missed opportunities in agri-food trade that could positively impact the SDGs would be environmental provisions in regional trade agreements (RTAs) that are effective in deterring damage to the ecosystem because of trade liberalisation, for example, limiting deforestation. Abman et al. (2024) found that the inclusion of specific provisions aimed at protecting forests and/or biodiversity almost entirely offsets the net increases in forest loss observed in similar RTAs without such provisions, especially for tropical, developing countries with greater biodiversity. Due to trade liberalisation that can spur environmental degradation, the inclusion of these environmental provisions limits agricultural expansion, hence reducing deforestation that can help to achieve SDG 15 (life on land). ...

The Effectiveness of Environmental Provisions in Regional Trade Agreements
  • Citing Article
  • March 2024

Journal of the European Economic Association

... In examining the role of cultural similarity in determining migration patterns, Grohmann 19 shows that using DICL data to control for linguistic similarity produces estimates that are similar in magnitude and direction to those in earlier work that use different data to measure language. Fontagńe et al. 20 examine the role of infrastructure in pan-African trade. In this estimation, the authors use the DICL linguistic proximity index as a control for ease of communication, producing positive and significant results that are consistent with prior literature on language and trade. ...

Trade and Infrastructure Integration in Africa
  • Citing Preprint
  • January 2023

... The number of announced greenfield FDI projects in Russia collapsed from 157 in 2021 to just 21 in 2023, and the sources of this investment shifted dramatically. In 2021, 59% of announced greenfield FDI projects in Russia were from 18 Product-level analysis of shifts of U.S. imports away from China highlights the effects of tariffs (Freund et al., 2023) and the feasibility/economic attractiveness of shifting to alternative locations [see pp. 52-58 of Altman and Bastian (2024)]. ...

Is US Trade Policy Reshaping Global Supply Chains ?
  • Citing Book
  • November 2023

... A one SD increase in lagged joint uncertainty is associated with a decline in bilateral trade by 2.6%, 1.1% age points higher than the baseline result. This finding is slightly similar to previous findings by Jakubik and Ruta (2023), suggesting that a one SD hike in global trade policy uncertainty leads to a 3.1 percent decline in bilateral trade between geopolitical rival countries. ...

Trading with Friends in Uncertain Times
  • Citing Article
  • August 2023

Journal of Policy Modeling