Large-scale multinational shocks and international trade: a non-zero-sum game

International trade has improved living standards but also become a major channel for spreading shocks on global scale. The increasing relevance of intersectoral linkages and in intermediates renewed interest input–output techniques. This paper enriches the literature empirical models with an input–output/econometric approach including substitution effects price spillovers. Our model shows that (a) elasticities bilateral shares are not constant time differ across sectors countries; (b) international changes alter relative competitiveness between competitors; (c) final demand components such as consumption investment react to prices. Large multi-country produce feedback national economies they adapt by import exporters, changing content domestic production adjusting demand. These feedbacks affect producing asymmetric non-zero-sum game.