Trade and Industrial Policy in Supply Chains: Directed Technological Change in Rare Earths

We thank Philippe Aghion, Costas Arkolakis, Laura Bottazi, Lorenzo Caliendo, Maggie Chen, Paola Conconi, Banu Demir, Basile Grassi, Elhanan Helpman, Ben Faber, Oleg Itskhoki, Daniel Lederman, Ernest Liu, Mathieu Parenti, Andrés Rodríguez-Clare, Adam Szeidl, Catherine Thomas, Felix Tintelnot and seminar participants at Berkeley, Princeton, Bonn-Mannheim CRC TR224, 3rd CEPII IFM Workshop, Yale Cowles Conference, CREI@30, IfW-CEPR Conference on Geoeconomics Berlin, Oxford Trade Jamboree, PSE Workshop ‘Industrial Policy in the Global Economy’, ISOT Conference, ‘WE ARE IN’ conference, WB Workshop on Industrial Policy, ECB, TU Vienna, CEU, Bonn, Paris School of Economics, IfW Kiel, Banque de France, KU Leuven, Villars Workshop, Aarhus, CEPR Paris Symposium, SUERF-ECB Workshop. Support by the Deutsche Forschungsgemeinschaft (DFG) through CRC TR 224 (Project B07) is gratefully acknowledged. The views do not necessarily reflect those of the Inter-American Development Bank. We are grateful to Florian Frühhaber, Younghun Lee, Francisco Scalco, and Athibi Sharma for their excellent research assistance. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• May 27, 2025
• November 13, 2025