Publication Type
Working Paper
Version
publishedVersion
Publication Date
5-2021
Abstract
In this paper, we follow the micro-to-macro approach of Fajgelbaum et al. (2020) and analyze the impacts of the 2018–2019 U.S.-China trade war on the Chinese economy. We use highly disaggregated trade and tariff data with monthly frequency to identify the demand/supply elasticities of Chinese imports/exports, combined with a general equilibrium model for the Chinese economy (that takes into account input-output linkages, and regional heterogeneity in employment and sector specialization) to quantify the partial and general equilibrium effects of the tariff war at the product/sector/region/aggregate levels. This complements the studies that focus on the ex post response of the U.S. economy by Amiti, Redding and Weinstein (2019), Fajgel baum et al. (2020), and Cavallo et al. (2020).
Keywords
Chinese Economy, Tariff War, Elasticity Estimation, Regional Labor Market Adjustment, Welfare Analysis
Discipline
Asian Studies | International Economics
Research Areas
International Economics
Publication
SMU Economics and Statistics Working Paper Series, Paper No. 25-2020
First Page
1
Last Page
56
Embargo Period
12-7-2020
Citation
CHANG, Pao-li; YAO, Kefang; and ZHENG, Fan.
The response of the Chinese economy to the U.S.-China Trade War: 2018-2019. (2021). SMU Economics and Statistics Working Paper Series, Paper No. 25-2020. 1-56.
Available at: https://ink.library.smu.edu.sg/soe_research/2415
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.