Trade protectionism and US manufacturing employment

Chunding Li () and John Whalley

Economic Modelling, 2021, vol. 96, issue C, 353-361

Abstract: This paper builds a numerical global general equilibrium model to simulate the effects of US-initiated trade protection measures on manufacturing employment. The simulation results show that US trade protection measures reduce manufacturing employment in the US, and these losses will further increase if trade partners take retaliation measures. Although trade protection measures can increase demand for US domestic manufactured goods because of decreased foreign demand, increased consumption prices of manufactured goods will move the demand to services. Trade partners’ retaliation measures will further decrease the demand for US manufactured goods. The whole effect is that the US loses on domestic manufacturing demand and then loses manufacturing employment.

Keywords: Trade protectionism; Manufacturing employment; United States; Numerical simulation (search for similar items in EconPapers)
JEL-codes: C68 F16 F62 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Trade Protectionism and US Manufacturing Employment (2019)
Working Paper: Trade Protectionism and US Manufacturing Employment (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:96:y:2021:i:c:p:353-361

DOI: 10.1016/j.econmod.2020.03.017

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