China Syndrome Or Not? Labour Market Effects Of A Greater Trade Openness In Us Manufacturing

Fabrizio Antenucci

No 242, Departmental Working Papers of Economics - University 'Roma Tre' from Department of Economics - University Roma Tre

Abstract: According to the recent economic literature, international trade has had a significant influence on the US labour market, due to the import penetration of Chinese products. In particular, according to David Author and his co-authors, Chinese import would have caused a “China syndrome”, i.e. strong employment contraction as well as negative impact on the cumulated earnings of workers in the areas most exposed to this competition. Although it can be maintained that, in recent decades, international trade has had a negative impact on the US labour market, in this paper it is claimed that, from a theoretical point of view, import penetration does not represent an appropriate index to detect the influence of international trade on the labour market. The aim of this paper is to offer an alternative analysis tool, the Trade Openness Index, which could exceed the limits of the Factor Content of Trade and the Stolper-Samuelson theorem.

Keywords: Trade; Globalization; Deindustrialization; Labour Market Adjustment; Technical progress (search for similar items in EconPapers)
JEL-codes: E24 F10 F60 (search for similar items in EconPapers)
Pages: 30
Date: 2018-12
New Economics Papers: this item is included in nep-int and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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