It’s a fascinating time to be an international trade specialist. Just ask Vanya Georgieva, a PhD candidate with the Department of Economics who has spent the last five years developing expertise in tariffs, subsidies and other tools of trade policy governments have at the ready. Her Job Market Paper, Trade and Industrial Policy with Global Production Networks, studies how tariffs and subsidies propagate through global production networks.
“Sometimes it feels a bit too close! I’ll read an article and immediately spot all the economic dynamics at play,” Georgieva admitted. “But beyond professional curiosity, it’s an important moment for trade economists to help unpack the deeper consequences of what’s happening.”
With daily headlines cataloguing each move in the tariff wars, it’s become normal for friends, family and undergraduate students to bring questions about whether their governments should or should not retaliate to Georgieva. It’s a role she has prepared for and feels a responsibility to fulfill.
“Understanding is fundamental,” she said. “Underneath the technical and political language, the key concepts can be explained in a way that’s totally everyday. I think one of the most important things we can do as researchers is to share what we’ve learned. Academia gives us access to incredible knowledge and tools, but that value multiplies when it’s shared, whether through collaboration, public engagement, or working with policy institutions.”
Real world applications are central to Georgieva’s own research agenda. In her paper, Trade and Industrial Policy with Global Production Networks, she explores how tariffs and subsidies, especially when targeted at specific industries and countries, interact within global production networks.
The more she progressed in her work, the more Georgieva saw that her outlook had to expand.
“I started this project focused on subsidies because their use has been growing exponentially, think of the Inflation Reduction Act, the CHIPS Act, China’s Made in 2025 initiative,” she explained. “These are massive policies, but over time, it became clear that you can’t study subsidies in isolation. Tariffs and subsidies are deeply intertwined.”
Examining the interconnectedness of global supply chains, the targeting of specific industries and countries by tariffs and subsidies, and the scope of multilateral trade agreements, ultimately taught Georgieva that collaboration on trade is essential.
“Three things stood out in my results,” she said. “First, when tariffs are levied on service sectors, like IT and finance, they are incredibly impactful. Second, subsidy wars can be even more damaging than trade wars. And third, even if Canada isn’t directly targeted by tariffs, we’re still affected through global supply chains. These findings point to the need for more global cooperation, not less.”
These findings are directly applicable to current international trade conditions.
“In a world of deeply interconnected production, Vanya’s work examines how national policies interact through global value chains and input–output linkages, and how these interactions affect trade, innovation, and welfare,” said Professor Victor Aguirregabiria, one of Georgieva’s thesis supervisors. “This is highly relevant in light of the renewed use of industrial policy and ongoing technological and geopolitical tensions between economies.”
The Department of Economics has become accustomed to Georgieva’s engagement with all aspects of academic life at the University of Toronto, whether its building conditions, or graduate student enrichment.
“If I see something that can be improved, I try to figure out who I can talk to and how to make it happen,” she said. “The department has been very supportive of these kinds of initiatives. It’s been easy to pitch ideas, and they’re often well received.”
Two years ago, Georgieva was instrumental in initiating building improvements to Max Gluskin House to ensure the department’s home became safer for birds. She has also worked to improve the student experience.
“One initiative I led for a full year was organizing a reading group,” she remembered. “It was a great experience. Sometimes, if you send out a few emails, you might end up with a room full of people eager to discuss ideas.”
At the moment, Georgieva efforts are primarily invested in knowledge sharing through her role as a teaching assistant. Throughout her studies she has led tutorials for MBA and undergraduate economics courses. While her students are diverse, she has learned there must be similarities in her approach.
“Teaching in these settings is both challenging and rewarding,” Georgieva explained. “It’s challenging because you’re helping students translate complex models into meaningful insights. It’s also fun because you get to see how they think, how they engage, and how they start connecting theory to real-world applications.”
Return to the Department of Economics website.
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