Social and Behavioral Sciences Commons^™

U.S.-China Bilateral Trade Flows And U.S. Employment, Tobin Hansen

CMC Senior Theses

The U.S.-China diplomatic relationship today is shaped significantly by economic factors. Recent strains of literature have expanded our understanding of how international economic policy choices have effected U.S. workers and labor markets. This paper extends this research by imposing bilateral symmetry in the trade flow calculations of previous works, which historically have considered U.S. exports globally. I build on the net-impact analysis of Feenstra, Ma, and Xu (2017b) and adopt the instrumental variable strategy used in Acemoglu et al. (2016), which uses Chinese trade flows with eight additional high-income countries to avoid endogeneity when comparing U.S.-China trade. From this analysis, …