Did China tire safeguard save U.S. workers?

Sunghoon Chung (), Joonhyung Lee and Thomas Osang

European Economic Review, 2016, vol. 85, issue C, 22-38

Abstract: Although temporary trade barriers are perceived as a feasible policy instrument for securing domestic jobs in the presence of increased globalization and economic downturns, no study has assessed whether such temporary barriers have actually saved domestic jobs. To overcome this deficiency, we evaluate the China-specific safeguard case on consumer tires petitioned by the United States. Contrary to claims made by the Obama administration, we find that total employment and average wages in the tire industry were unaffected by the safeguard. Further analysis reveals that this result is not surprising as we find that imports from China are completely diverted to other exporting countries partly due to the strong presence of multinational corporations in the world tire market.

Keywords: China tire safeguard; Temporary trade barriers; Trade diversion; Interactive fixed effects (search for similar items in EconPapers)
JEL-codes: F13 F14 F16 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (12)

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Related works:
Working Paper: Did China Tire Safeguard Save U.S. Workers? (2015)
Working Paper: Did China Tire Safeguard Save U.S. Workers? (2014)
Working Paper: Did China Tire Safeguard Save U.S. Workers? (2014)
Working Paper: Did China Tire Safeguard Save U.S. Workers? (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:85:y:2016:i:c:p:22-38

DOI: 10.1016/j.euroecorev.2015.12.009

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