How the US-China Trade War Accelerated Urban Economic Growth and Environmental Progress in Northern Vietnam

Matthew Kahn, Wen-Chi Liao and Siqi Zheng

No 33126, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The Trump Administration's tariffs created a wedge between mutually beneficial trades between China's producers and U.S. consumers. Moving production to nearby Vietnam allows firms to jump the tariff wall. Within Vietnam, cities closer to China with respect to distance and industrial mix grow faster and attract more FDI. They are increasingly consuming renewable power to fuel their local economy. We study the local air quality gains and the carbon dioxide emissions reductions associated with the growth in regional trade. China’s regional trade increases have important implications for the rise of the system of cities across Asia.

JEL-codes: F14 R40 (search for similar items in EconPapers)
Date: 2024-11
New Economics Papers: this item is included in nep-cna, nep-ene, nep-env, nep-int, nep-sea, nep-tra and nep-ure
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