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Is 3D Printing a Threat to Global Trade ? The Trade Effects You Didn't Hear About

Author

Listed:
  • Freund,Caroline
  • Mulabdic,Alen
  • Ruta,Michele

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.

Suggested Citation

  • Freund,Caroline & Mulabdic,Alen & Ruta,Michele, 2019. "Is 3D Printing a Threat to Global Trade ? The Trade Effects You Didn't Hear About," Policy Research Working Paper Series 9024, The World Bank.
  • Handle: RePEc:wbk:wbrwps:9024
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    Cited by:

    1. Pol Antràs, 2020. "De-Globalisation? Global Value Chains in the Post-COVID-19 Age," NBER Working Papers 28115, National Bureau of Economic Research, Inc.
    2. Antrà s, Pol, 2019. "Conceptual Aspects of Global Value Chains," CEPR Discussion Papers 14191, C.E.P.R. Discussion Papers.
    3. Ben Shepherd & Anita Prakash, 2021. "Global Value Chains and Investment: Changing Dynamics in Asia," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2021-RPR-01 edited by Ben Shepherd & Anita Prakash, February.
    4. Hayakawa, Kazunobu & Mukunoki, Hiroshi, 2022. "How does additive manufacturing change trade?: evidence from trade in sound recordings," IDE Discussion Papers 848, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Francesca Caselli & Matilde Faralli & Paolo Manasse & Ugo Panizza, 2021. "On the Benefits of Repaying," IMF Working Papers 2021/233, International Monetary Fund.
    6. Jakubik, Adam & Rotunno, Lorenzo & Saini, Alisha, 2025. "Foresee the unseen: Evaluating the impact of artificial intelligence on international trade," Journal of Policy Modeling, Elsevier, vol. 47(4), pages 842-861.
    7. Marc Bacchetta & Eddy Bekkers & Roberta Piermartini & Stela Rubinova & Victor Stolzenburg & Ankai Xu, 2024. "COVID‐19 and global value chains: A discussion of arguments on value chain organisation and the role of the WTO," The World Economy, Wiley Blackwell, vol. 47(9), pages 3709-3746, September.
    8. Nayyar, Gaurav & Pleninger, Regina & Vorisek, Dana & Yu, Shu, 2024. "Digitalization and Inclusive Growth : A Review of the Evidence," Policy Research Working Paper Series 10941, The World Bank.
    9. Wang, Mengying & Ren, Siyu & Xie, Guo, 2024. "Going “green trade”: Assessing the impact of digital technology application on green product export," Technology in Society, Elsevier, vol. 77(C).
    10. Steven A. Altman & Caroline R. Bastian & Davis Fattedad, 2024. "Challenging the deglobalization narrative: Global flows have remained resilient through successive shocks," Journal of International Business Policy, Palgrave Macmillan, vol. 7(4), pages 416-439, December.
    11. Anna Giunta & Enrico Marvasi & Marco Sforza, 2025. "Digitalization and regionalization of Global Value Chains in European industries," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 52(3), pages 599-628, September.
    12. Simola, Heli, 2021. "The impact of Covid-19 on global value chains," BOFIT Policy Briefs 2/2021, Bank of Finland Institute for Emerging Economies (BOFIT).
    13. Kong, Nan & Wang, Bingjie & Zhang, Yan & Zhou, Nianli, 2024. "How does digital technology affect export in services?," Journal of Asian Economics, Elsevier, vol. 95(C).

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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